TV manufacturers appear to be banking on increase sales if the latest claims from OEM manufacturers are to be believed. New Research reveals that vendors are currently dumping models in an effort to keep up volumes while clearing current stock for new models.
Despite the current situation a new report from DisplaySearch, claims manufacturers are confident that demand for TVs will return running into Christmas.
In recent weeks the top 16 brands increased production to 19.4 million for September when most TV vendors in Australia will new models.
DisplaySearch said that In May, the top brands missed their LCD TV set production targets by 10%, due to weaker-than-expected sell-through in the market.
According to Deborah Yang, Research Director of DisplaySearch, the slowing market demand, combined with competition for market share, has led LCD TV makers to focus on lower-cost models and price promotions in an effort to keep their volume targets up.
She said “It’s believed that price elasticity still exists in certain main regions, but LCD TV brands remain cautious in their plans. Many brands are struggling with weak sales in developed markets and are undertaking inventory clearance”.
