Samsung PK Panasonic: Starting 3D TV Price Battle

"Nobody can beat Samsung's price cuts in the world's largest TV market," Yoshiiku Miyata, head of Matsushita's television business unit in Osaka, said in an August 30 interview in Osaka. "Our previous goal was to sell 1 million 3D TVs by March 31 this year, but until now, we still don't know when this goal will be achieved."

At the site of Best Buy, the largest electronics retailer in the United States, a Samsung 50-inch 3D plasma TV sells for $989.99, while a 3 D Viola TV with the same size has a higher price, $2499.99. . Sony's 46-inch 3D LCD monitor Bravia series is priced at $2,299.99.

Vieira TV makers who joined Sony Corp. pointed out that the price war for new products detonated by Japanese manufacturers in the United States may put pressure on manufacturers to complete their revenues, as manufacturers expect to reduce mainstream flat-panel TVs through the popularity of 3D TVs. The impact of falling prices on the market.

Nobuo Kurahash, an analyst with Mizuho Financial Group in Tokyo, said, “Although Panasonic is leading in the plasma TV field, but we want to make a difference in strategic decisions, the key lies in the advantages of the brand and earnings. Like, at present, Samsung is in a leading position in the 3D TV competition."

Record profit

In July this year, Samsung Electronics, the world's largest TV maker, announced that its net income in the second quarter increased by 83% year-on-year to a record 428 billion won (US$3.6 billion). This is more than four times higher than the total profit of Panasonic and Sony in the first three months of July.

However, Panasonic was the first TV manufacturer to sell 3D TVs in the United States. But in March of this year, Samsung, which started selling 3D TVs in the United States, came from behind. As of August 31, more than one million units were sold, and thus Samsung In the United States, the market share of the three-dimensional television reached 88.3%.

Sony, which is headquartered in Tokyo, plans to sell at least $2.5 million worth of 3D Bravia series televisions by March 2011, but before that, they did not disclose the shipment of 3D products. The price of 3D TVs has fallen faster than expected," Ishida Kasumi, who is responsible for Sony's home entertainment business, said last week.

3D TV shipments

The data released by a search company in Austin, Texas, in July showed that in 2010, 3D TV shipments may reach 3.4 million, and by 2014 it will reach 42.9 million.

As of the 11th session of the Tokyo Stock Exchange, Matsushita shares fell 0.81% to close at 1,059 yen, which means its loss this year has increased by 20%. Sony, the domestic rival that has the closest relationship with Panasonic, has also dropped its share price by 11% this year, while Samsung's share price fell only 5.3% this year.

In this fiscal year, Panasonic plans to increase the sales of televisions to 33% to 210,000 units, including 10,000 3D TVs. This plan has been gradually implemented. Although there are signs of a slowdown in demand in the United States and Europe, its momentum in Japan and developing countries remains strong, with Miyata, head of Matsushita, pointing out.

According to estimates, the TV business losing money six months before September 30 may begin to make profits in the second half of the year, Miyata said. "The sharp increase in the yen is causing dramatic changes in the business environment, but we are trying to make the company profitable by reducing costs and selling new products," he said.

Do not follow Samsung

Shiji Yoshihide, who is responsible for Sony's home entertainment business, pointed out that due to the strength of the yen, Sony may slow down the price cuts for TVs in overseas markets. Sales in Japan, China, and the United Kingdom offset the weak US market, and TV sales have reached the target as a whole. Ishida said that in the current fiscal year, the company’s goal of reaching 25 million TV sales remains unchanged.

According to a report released last week by CLSA’s Asia Pacific Market Department, global TV shipments in 2010 may increase to 13% to 2.39 million units. According to this report, Europe, Japan, and developing countries including China will promote growth, while the development of the North American market may be stalled.

Matsushita currently relies on the sales of 3D TVs in Japan and Europe to counter Samsung’s advantage in the US market, Miyata said. “We are not going to follow Samsung’s approach in the United States. This is impossible.”