Wednesday, January 7, 2004
Motorola Inc. intends to enter the competitive flat-screen TV market.
The world second largest cellular phone maker is unveiling ts LCD TVs this week at the Consumer Electronics Show in Las Vegas. The company wants to have a piece of the high profits and heady growth market.
Demand for LCD TVs is growing fast. They made up only 2.4 percent of last year's overall global TV sales, but is expected to hit 4.5 percent this year and 8.3 percent in 2005, IDC said.
As sales surge, prices and profit margins will drop, analysts said. The average price for LCD screens in the 30- to 39-inch range to fall to about $1,250 by 2006 from between $3,000 and $3,500 now.
Ultimately, price, design and marketing will determine winners, but with the market still in its infancy there is time for newer players to establish themselves, the analyst said.
Motorola's strategies is to initially selling LCD TVs in the Chinese market, where its has a strong brand name. From there, it will expand to the rest of the world including the US market, the company said.
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