2010-08-10 10:27

Consumers look at Skyworth TVs in a supermarket in Yichang, Hubei province on May 1. [Photo / Asianewsphoto]

'Top Concern'

Cheaper prices for domestic models help. A 40-inch, international-brand TV sold for an average of about $902 in the second quarter, or about 33 percent more than Chinese brands, according to DisplaySearch.

"Our advantage is we are a local brand," Shen said. "We don't worry about the competition at all."

Still, the price cuts may be helping overseas companies make inroads. Chinese producers' combined market share fell to 76 percent in the first quarter from 83 percent the previous quarter, according to Hisakazu Torii, a Tokyo-based analyst at DisplaySearch.

Liu Lin, 29, said TVs from abroad are worth the extra cost.

"The quality of Sony's picture is really good," said Liu, who bought a Sony 46-inch Bravia set for 5,999 yuan, or more than half her monthly pay. "Quality and price are of the same importance in buying a TV set."

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Japanese television makers also face the hurdle of a stronger currency that's giving them less room to cut prices than South Korean rivals. The yen has gained 7.7 percent against the yuan this year, while the Korean won has fallen 0.6 percent.

They may get a boost from the falling prices of flat panels, typically the costliest TV component. LG Display Co, the world's second-largest LCD maker, last month forecast that panel prices would decline an unspecified amount through August.

"Price is my top concern given I'm not that well-paid," said Pan Ying, who earns about 5,000 yuan monthly at a Beijing health-care company. "I'll consider a foreign brand if the price is good."