Chinese LCD TV Makers Expand Market Share

Chinese companies are taking a bigger chunk of the global LCD TV market thanks to strong support from the Chinese government. According to market researcher DisplaySearch, Chinese firms captured a 21.4 percent share of the global market in the third quarter, up from 16.9 percent in the previous quarter. The combined market share of Japanese manufacturers slipped from 35.3 percent to 34.3 percent during the same period.

The world's largest LCD TV maker, Samsung Electronics, saw its share of the market drop 0.2 percentage point to 18.4 percent in the July to September period, while LG Electronics claimed a 10.7 percent share, down 1 point.

The two Korean firms were the only global manufacturers with double-digit market shares in the quarter. Samsung has been the market leader in terms of units sold for 13 straight quarters and for 15 consecutive quarters in terms of earnings.

The rapid growth of Chinese companies is the result of a government subsidy program for people who purchase TVs costing W600,000 (US$1=W1,156) or less. The policy has not benefited Korean or Japanese companies that mainly produce expensive models, but Chinese media recently reported that Beijing is considering scrapping the price ceiling to make the subsidy available for all LCD TV purchases.