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In 2017, the color TV industry experienced both challenges and opportunities. While competition remained intense, the integration of new technologies and cross-industry collaboration opened up exciting possibilities for the future. This momentum is expected to drive further innovation in 2018.
The year started with a stable overall market, with estimates suggesting China’s TV market would sell around 48 million units in 2017. Despite similar sales figures compared to the previous year, the industry faced several obstacles. Rising LCD panel prices since early 2016 put pressure on manufacturers, while weak domestic demand led to declining profits and shipments during the first half of the year.
However, things began to turn around in the second quarter as panel prices eased. The latter half of the year saw a recovery in shipments, with some analysts predicting continued growth before the Lunar New Year. Chang Dong, President of Konka Multimedia Industry Division, emphasized that despite fierce competition, investing in technology and brand premium could lead to strong performance. Indeed, Konka managed to grow its revenue by 2.5% in the first half of the year, driven by strategic investments such as the RMB 1 billion Guangming R&D Center and the launch of its custom wallpaper TV.
Meanwhile, internet TV brands faced a decline due to limited manufacturing capabilities and supply chain inefficiencies. Their market share shrank, and this trend is likely to continue in the coming years.
Looking ahead, consumers are showing strong interest in large-screen TVs, ultra-thin designs, curved displays, and 4K resolution. According to the China Electronic Chamber of Commerce, demand for high-end, personalized TVs is on the rise. In 2018, the industry is expected to focus even more on large, high-end screens, with emerging technologies like OLED, quantum dots, AI, and laser TVs set to play a bigger role.
Industry leaders like Chen Hao from Sony highlighted the rapid growth of the large-size TV market in 2017, where high-end models became increasingly popular. Chang Dong also pointed to OLED, 8K, and AI as key directions for future development, with companies like Konka and LG accelerating their OLED strategies.
Cross-border integration also gained traction in 2017, as telecom companies, e-commerce platforms, and TV manufacturers collaborated more closely. This trend is expected to intensify in 2018, blurring the lines between online and offline retail.
Facing intense competition, leading TV companies have been focusing on transformation. Konka, for instance, has accelerated its “four modernizations,†including high-end product development, business capitalization, and smart home integration. The company is moving beyond just selling TVs, aiming to become an investment holding group.
Skyworth has also diversified into areas like LCD panels and automotive technology, while Xiaomi and others launched AI-powered TVs. These moves signal a shift toward smart homes, with AI TVs serving as the control center for future intelligent living.
Jingdong is building an AI-driven smart home ecosystem through big data, and BOE has expanded into IoT solutions, positioning itself as an IoT company offering smart devices and services. As AI and IoT continue to evolve, the smart home sector is poised for significant growth.
In conclusion, the color TV industry is evolving rapidly, with smart home integration and technological innovation at the forefront. As TVs transition from simple receivers to central hubs of the smart home, the battle for the "smart home entrance" will define the next phase of competition.