New York: South Korean electronics major Samsung, seeking to capitalise on the shifting consumer behaviour and its first-mover advantage in the Indian LED TV market, is targetting a four-fold surge in sales of these next-generation televisions by next year.
“We expect 10% of our flat-panel sales in India to come from LED TVs by the end of this year, which is expected to double by next year,” Samsung’s South West Asia president and CEO Jung Soo Shin said here.
Jung was speaking to reporters after the launch of three new LED TV models for India at the Samsung Experience store here. It was for the first time that Samsung was doing an international launch of the models for the Indian market.
LED (light emitting diode) TVs contributed about 5% to Samsung’s overall flat panel sales in the country during the first half of this year.
Relatively costly, LED TVs are about one-inch thick and use LEDs as their primary light source, as against the traditional Cold Cathode Fluoroscent Lamps (CCFL) used in the LCD (liquid crystal display) TVs, giving the customers better picture quality with lower energy usage.
With the launch of the three new models, Samsung has increased its portfolio of LED TVs to seven in India, which are priced in the range of Rs69,990 to Rs3,00,000, with the screen size ranging between 32 and 55 inches.
Jung said The coventional curved screen televisions were fast making way for slim and trendy flat screen TVs in India and these could be completely phased out in the next 2-3 years.
He said the continuing shift in consumer behaviour towards the flat-panel TVs would help the company achieve a leadership position in the overall colour TV market in India by 2010.
Samsung, which is not present in the curved screen TV segment, is currently ranked second in the overall colour TV market after LG. Samsung is already the largest player in the LCD TV segment with a 40% market share.
It is the only player manufacturing and selling LED TVs in the country.
The company is targetting an increase in its overall flat TV market share to 27% by the end of this year, from the present 24%.
During 2009, Samsung India expects to sell 600,000 units of flat panel TVs, which would include 10% of about 60,000 LED TVs. Besides, it expects to sell a total of 2.5 million units of flat and slim TVs this year.
In 2008, Samsung had sold 1.9 million units of flat and slim TVs and 300 units of flat panel TVs in India.
Jung said that Samsung India’s total sales turnover during 2009 would be in excess of two billion dollars, as it expects a growth of 25-27% over $1.7 billion in 2008.
The company also expects to increase its reach from 400 showrooms to 1,000 by December 2009 in the country.
Samsung Electronics America’s Consumer Electronics Division president Tim Baxter said that LED TV market was expected to witness a dramatic growth by 2010 and high-end LCD buyers were expected to move to LED TVs.
The worldwide LED TV sales was expected to rise from just about 0.2 million in 2008 to 3.5 million in 2009, then to 15 million in 2010, 39 million in 2011 and then to 64 million in 2012, he added.
Baxter said that Samsung sold 600,000 LED TV sets in just three months of the launch and was targetting 3 million in 2009 and 10 million in 2010.
The company commands a whopping 96% market share in the LED segment in the US, he added.