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TV makers see Q1 profit slump

By Gao Yuan (chinadaily.com.cn) Updated: 2014-04-15 17:31

Decreasing sales of televisions in the first quarter has hampered Chinese TV makers' profit growth, industry research showed.

Sales volume dropped more than 10 percent year-on-year in the first three months of this year. The sleepy demand also dragged turnover down 13 percent compared to the first quarter of 2013, said a China Business News report, citing Liu Chuang, a research manager at All View Consulting Ltd.

Shenzhen, Guangdong-based electronics maker Konka Group Co Ltd said its first quarter revenue slumped by 15.7 percent year-on-year to 4 billion yuan ($643 million). The company's net profit was also cut by a third from a year earlier.

Skyworth Group, the country's largest TV maker by market share, also reported first-quarter a sales volume decrease in China.

The Hong Kong-listed company saw its TV sales volume fall 32 percent year-on-year, according to China Business News.

A State-backed subsidiary policy spurred TV sales in the first quarter of 2013, said Liu from AVC, adding the initiative had lifted the basal for this year's sales performance.

Analysts estimated smart TVs with larger screens are likely to revive the industry starting this year.

More than 80 percent of customers in China said they will or may purchase a smart TV in the future, AVC said.

The penetration rate of smart TVs hit 45 percent in China as of the end of 2013, it added.

TV makers see Q1 profit slump

TV makers see Q1 profit slump

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