The Hindu Business Line : Falling prices for flat panel TVs spur sales

Chennai, June 10 The demand for TVs with flat panel display (FPD) terminals, such as LCD and Plasma, is expected to cross three million units by 2010-11. During fiscal 2007-08, it registered a growth of over 100 per cent. At the same time, production of ‘black and white’ televisions declined during the period. The phenomenon of falling prices in the FPD segment continued over the year and there is a marked tendency amongst the consumers to go for bigger size FPD TVs, says the 2007-08 annual report from the Union Ministry of Communications and Information Technology.

According to the report, the estimated production of all consumer electronics goods during 2007-08 is worth Rs 22,500 crore, which indicates a growth of 12.5 per cent over the previous year’s Rs 20,000 crore. Consumer electronics is a major sector and it contributes 28 per cent of the total electronic hardware production in the country.

In the consumer electronics sector, colour TV is the largest contributor. The domestic CTV market is estimated to cross 15 million units during the last fiscal, including about 2.5 million units of 14-inch CTVs supplied to the Government of Tamil Nadu for distribution among the masses.

The report further says that the DVD player market has shown a growth of over 20 per cent and is estimated at over seven million units during the year. There has been a good growth in the home theatre segment too. The demand for home theatre systems is expected to go up as DTH subscribers increase due to more service providers entering this platform. The set-top box (STB) market is also growing rapidly due to the expansion of DTH and introduction of CAS in the metros. As of now, about 25-30 per cent of the total requirement of STBs is being met by domestic manufacturers, with the rest being imported.

The electronic components manufacturing industry also grew at 8 per cent to touch Rs 9,500 crore. The components with major share in production were CD-R, colour picture tubes, PCBs, DVD-R and semiconductor devices. In the colour picture tubes segment, while the production of 14-inch tubes increased due to the Tamil Nadu Government procurement, 20-inch and 21-inch conventional (cathode ray tube) tubes production declined.

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