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LED to Replace LCD TVs in First Tier Markets by January 2012

Beijing Times, 11/02/11

Li Qi, head of consumer electronics sales at Chinese consumer electronics and home appliances retailer Suning's (002024.SZ) Beijing branch, revealed yesterday that standard LCD TV sets will gradually be replaced by LED TV sets in first tier city markets by the Chinese New Year holidays in late January 2012. The shift is the result of national energy efficiency regulations for flat-panel TVs released in December 2010, according to Li. A 32-inch LED TV set uses approximately 60W compared to the 80W consumed by an equivalent-sized LCD TV. Prices of LED TVs have decreased as manufacturers have ramped up production, eliminating LCD TV sets' price advantage.

Suning and rival Gome (0493.HK) are currently offering significant discounts in order to clear out LCD TV inventory, with some models available for half of their price last year.

Editor's Note: For more information on this topic, please see "China Implements FPTV Energy Efficiency Standards," MD 12/01/10 issue.

Keywords: Li Qi consumer electronics standard television Gome Suning LED TV set energy efficiency LCD 002024.SZ 0493.HK retail pricing regulation 1st tier flat-screen


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