OFweek Smart Home Network News Sharp announced the first fiscal year after Hon Hai's entry into the main financial year. As of March 31, 2017 fiscal year, Sharp achieved an operating profit of 62.4 billion yen, and the market adjustment agency data showed Sharp in the first quarter of the year. Shipments of TVs increased by 42.6% year-on-year, which helped it achieve its goal of tens of millions of shipments. This is a result of a fierce price war.
Sharp LCD TVs have adopted the “low-cost expansion of sales†approach in the Chinese market, with a year-on-year price drop of about 30%. From the Jingdong Mall to see the current Sharp 45-inch LCD TV is being promoted, the price is only 2299 yuan, this price is more than a known cost-effective domestic Internet brand millet also has an advantage, the current millet sales of millet 3S 48 inch price is 2599 yuan.
Cost-effectiveness is a weapon for domestic TV brands to grab market share. It is precisely because of their price advantage that domestically-made TV brands continue to gain market share in the domestic market and enter the world's forefront. Currently, the domestically-made TV brands Hisense and TCL, which are among the top four in the world, rely mainly on price advantages to gain an advantage in the domestic market share.
Domestic Internet TV brands are also rising rapidly with price wars. LeTV, the largest Internet TV brand in China, released its first TV product in 2013 and relied on revenue-subsidizing hardware obtained from Internet products. It expanded rapidly and reached 6 million shipments last year, close to the annual shipments of Hisense or TCL. Half of the price, it can be seen that in order to gain market share in the domestic market, price war is the best means.
Compared to mainland China TV brands, Hon Hai has a complete industrial chain from panel to assembly after Hon Hai's entry into the company. Currently, Sharp possesses the world's most advanced LCD panel production line, the Sharp Line 10.5 generation line (TCL in Mainland China. The 10.5 generation line of the line and BOE are under construction. Moreover, Hon Hai is a global foundry giant. No one can control cost control. Many mainland TV brands are also contracted by it. I am afraid that is more than domestic TV brands can not compare.
Thanks to this cost advantage, with the support of Hon Hai, Sharp TV launched a fierce price war in mainland China, determined to snatch market share from China’s largest TV market in the world. This is for mainland China’s TV brands. Of course not good news.
For Chinese TV users, Sharp still left a good impression. Its TV picture quality is good and its quality is high. However, the previous price is too high, causing most users to switch to lower-cost Chinese mainland TV brands. Now that its price drop will rekindle their memory, it can be seen from the sharp increase in Sharp TV shipments by more than 40% in the first quarter.
This means that after experiencing a fierce price war on Internet TV brands, mainland China TV brands have not breathed too much and have just returned to the third position in the world in the first quarter of this year (according to WitsView). The published results show that its 2016 net profit decreased by 38% year-on-year, and its net profit margin was only 2.0%. It also ushered in the impact of Sharp, once a TV giant, and this time Hon Hai seems to be in a good position to determine the price war. in the end.
Of course, today's mainland China TV brand is no longer the same as Wu Xia Meng. Haixin, the two domestic TV brands, has developed its own TV chip and set up its own LCD module factory. TCL's China Star Optoelectronics is the first in China. The two major TV panel manufacturers are building the world’s most advanced 11-generation panel production line. Faced with the fierce price war on Sharp TV, how will China's TV brands fight?
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