The war between plasma and LCD (liquid crystal display) televisions is becoming fiercer. LCD TVs are on an aggressive drive to push plasma TVs out of the market, according to a senior Samsung executive.
"The sales ratio between LCD TVs and plasma TVs is 4:1 in the GCC. And the gap between the two will only increase.The sales of LCD TVs is expected to grow exponentially," Indraneel Mitra, Marketing Manager of Samsung's advertising and promotion division, said.
"The LCD TV market is becoming increasingly competitive. Most of the consumer electronics companies are shifting focus to LCD TVs, as is Samsung. Ultimately LCDs will win the race," he said. Citing the UAE market, Mitra said Samsung sells 20,000 LCDs a month as against 5,000 plasma TVs.
Samsung currently has a 35 per cent market share in the LCD TV segment in the closed GCC market (excluding Saudi Arabia), with annual sales for its product touching 200,000 units, according to Mitra.
"We are targeting about $75 million (Dh275.25m) in sales for LCD TVs by the end of this year, which would be a 40 per cent growth over last year. The project growth for next year is 25 per cent," he said.
"We are by far the number one player in the LCD TV market.Whereas, Samsung is the number two player in the plasma TV category after LG Electronics," he said.
The overall size of the LCD TV market in the closed GCC region is estimated at around 800,000 units compared to 300,000 units for plasma TVs, Mitra said.
But while players such as Samsung and Sony are strongly increasing their focus on the LCD TV segment - Sony made an exit from plasma TVs in 2006 following years of debate others like Panasonic are betting on plasma TVs. Panasonic, which is the current leader in the region's plasma TV market with a 35 per cent share, will launch a whole new range of plasma TVs this year under its Viera brand. "The plasma TV segment is growing in the Middle East. While Panasonic produced six million units of plasma TVs this year, the aim is to increase it to 11 million units annually over the next two years," said Atushi Hinoki, Panasonic's spokesperson.
Differing from Hinoki's opinion, Samsung's Mitra said: "LCD TVs are the future as it is available in a wider range of sizes and at more competitive prices.
"The LCD TV screens range anywhere between 19 inches and 52 inches. But the plasma TV screens only start with 40 inches. So that immediately limits the choice for the consumer.
"However, LG has now launched a 32-inch plasma TV screen into the market." When asked if Samsung would consider exiting the plasma TV business at some stage, or perhaps introduce one with a smaller screen, Mitra said: "No, because as long as the market demand is there, we will continue to sell plasma TVs. And a smaller plasma TV screen is not such a viable option."
By Shweta Jain
© Emirates Today 2007
