Color TV Sector First Time Loss-makingSources from the Ministry of Information Industry told that China's color TV sector had altogether 27.71 million color TV sets produced and 29.02 million sold January-October 2000. But for price wars, a respective drop of 106 percent and 5 percent less than last year, and stocks on hand adding up to a total of 6 million the color TV sector had for the first time been run in the red as a whole in China.Compared with a domestic loss maker of color TV sets, color TV sets by foreign manufacturers rebounded with increased sales, rising profit gains and a growth of market share to 30 percent from 10 percent in 2000. According to Guo Zeli, general manager of Xiamen Overseas Chinese Electronic Co. Ltd., for price wars over color TV sets fought two crises have resulted: 1. Financial crisis, huge stock surplus and increased accounts receivable have TV enterprises eroded; 2. Innovative efforts affected, enterprises lack resources to do research and develop hi-tech products. Zhang Qi, department director with the Information Industry, said that price wars over color TV sets had caused China a loss of RMB14.7bn yuan, and an aggregate loss of RMB20bn at least by the whole color TV sector, according to a CEO of a Chinese color TV manufacturer. By PD Online staff member Huang Ying |
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