The Indian smartphone market is a fierce battleground for OEMs, trying to win consumers with their high-value, low-priced handsets. Companies like Xiaomi, OPPO, Meizu, Vivo and others have created a new playground, forcing the big players like Samsung and others to come up with new and price-efficient strategies.
But the price war trend seen in the smartphone market is being replicated in the television market in India as the latest price cuts by industry leaders Samsung, LG and Sony suggest. According to a report in The Economic Times, the three most dominating TV brands have slashed the prices of their televisions as much as by 15 percent, which is noted as the steepest cut ever.
The move is suggested as a response by these giants facing threat from growing OEMs like Micromax, Intex, TCL, BPL and Sansui that have a product range selling up to Rs. 10,000 cheaper than Samsung, LG and Sony. The 15 percent price cut drives a massive revolution in the television industry as LG, Samsung and Sony collectively command an 80 percent of the market share.
LG India said that the price cut on select LED TV models was to "drive sellout velocity and gain market share," while Sony and Samsung said the prices on the large screen models were dropped as they are reaching end-of-life. There were no such adjustments made in price on a global front.
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"Globally, there has been no decrease in prices of LED televisions, but the big brands are under pressure to reduce prices in India due to sales taking a hit with several brands entering the market and playing on price. This is across television sizes, but the maximum focus is on the 32-42-inch segment, which alone accounts for over 55% of the market," chief of a leading television maker was quoted as saying by ET.
If you recall, mobile market in India was mainly led by brands like Samsung, Apple and Nokia, but the industry flipped when Chinese smartphone makers like Xiaomi, LeEco, Meizu, OPPO, Vivo and Huawei started offering products with premium specs at an affordable cost. The transformation from mobile phones being a luxury to becoming a significant part of our daily lives came with affordability.
The latest price cut in the television models by the leading brands is an early sign of a similar trend in the LED TV market, which is valued at Rs. 22,000 crore. It remains to be seen how this competition plays out in the coming year.