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China Eliminates High Inventory Levels of TV Panels

Autor: Markus Hevesi
05/17/2010, 22:20 CET

Despite sluggish sales at the Chinese Labour Day, Chinese TV makers obviously managed to liquidate their extraordinary high inventory levels, which were up to two weeks in advance. According to the news portal DigiTimes, a large number of manufacturers had not ordered TV panels in preparation for this traditionally sales-boosting holiday because they wanted to decimate their own inventories. Among others, one of the reasons for the high inventory level were the sales at the Lunar New Year, which also had been way below all expectations.

According to estimations by AU Optronics, approximately 2.4 million LCD TVs were sold at the Chinese Labour Day, whereas other sources speak of figures ranging from 2.4 million to 2.7 million units. In general, the sales were distinctly lower than analysts had forecasted: While Hisens and Skyworth were expected to sell up to 300,000 TV sets each, none of the companies was able to sell more than 250,000 units at the May holiday. Competitors Konka and TLC only managed to sell 200,000 televisions each, whereas Haier and Changhong Electric in each case were able to sell 180,000 LCD TVs.

Considering the depleted inventories, DigiTimes expects panel orders from China once more. Chinese manufacturers also will join the industry wide trend to ramp up inventories in preparation for the sales-boosting peak season a the end of the year, starting in the second half of quarter number two.

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