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Samsung Cuts Prices of DLP-TVs Sold in Taiwan
Jan 28, 2005
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Samsung Electronics of South Korea has announced a 35-percent cut on the retail price of a 50-in digital light processing (DLP) rear-projection TV model sold in Taiwan, triggering a new price war among local, Korean, and Japanese large-sized digital TV brands.

Samsung recently cooperated with Tsann Kuen Enterprise Co., a leading computer, communication, and consumer electronics distribution chain in Taiwan, to cut the price of a 50-in DLP rear-projection TV model to NT $109,000 (approx. U.S. $3,417) from NT $169,900 (approx. $5,326).

Tsann Kuen's Vice President Tian Chu-yin said that large digital TVs have become mainstream models for consumers. Samsung has fully recognized that the more than NT $100,000 (approx. $3,135) price level is too high to stimulate a buying spree among consumers.

Samsung Taiwan President Kao Yu-tsan estimated that domestic sales of rear-projection TVs would grow by 50 percent in 2005 to reach 5,000 to 6,000 units, with Samsung aiming to grab a one-third share of the local market with sales of 1,500 units this year.

Matsushita Electric (Taiwan) Co., Ltd. recently announced that its parent firm in Japan has decided to have all of the under-32-in LCD TVs sold in Taiwan produced on the island to boost cost competitiveness. Matsushita Taiwan also claimed that its new 32-in LCD TV model would be priced at only NT $69,900 (approx. $2,191), much lower than the prices of imported Sony and Sharp similar models.

Panasonic Consumer Sales (Taiwan) Co., Ltd. (PCST) President Chen Shih-chang stressed that the era of digital-TV entertainment has come, with large-sized TVs with set-top boxes, high picture quality, and Hi-Fi video quality becoming mainstream models. Mr. Shih-chang predicted the annual sales in the domestic LCD TV market to double to 200,000 units this year, mostly available with large-screen displays.

In late 2004, LG Taiwan cut the price of a 42-in Video Graphics Array (640 by 480 pixels) grade plasma display panel (PDP) TV model to NT $109,000 (approx. $3,417) from NT $149,000 (approx. $4,670), and enjoyed good sales-promotion effect. The Korean brand also launched a 32-in LCD TV model at a unit price of only NT $79,900 (approx. $2,504), widening the price gaps with counterparts from Sony and Sharp.

Local V-Tek Techology Co., Ltd. recently pushed a PDP TV model at the price of less than NT $50,000 (approx. $1,567) per unit, in cooperation with Tsann Kuen.

Tatung Co. and Top Powersonic Co. Ltd. have launched competitively priced 30-in LCD TV models since late 2004, and the company's sales of such models have fared well. (www.gov.tw)

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