Skyworth Group Co. Ltd. has cut prices on its TVs as it seeks to recover its sales crown from industry upstart Xiaomi Corp.
On Tuesday, Skyworth announced that it will lower the price of its 55-inch organic light-emitting diode (OLED) TVs to 7,999 yuan ($1,162) and the price of its and 65-inch OLED TVs to 15,999 yuan, representing price reductions of 4,000 yuan and 5,000 yuan respectively.
The move comes as the industry is facing headwinds from sluggish sales, which have triggered a protracted price war in which TV-makers vie for market share.
TV sales in China fell 1.1% year-on-year in the first quarter this year to 12 million, while the value of the sales plunged 13.1% to 34.9 billion yuan, according to data from Beijing-based researcher All View Cloud.
A 55-inch OLED TV of its homegrown rival Konka is priced less than 7,000 yuan on e-commerce platform JD.com.
Beyond that, a slew of tech brands, including LeEco and Xiaomi, have bet on smart TVs as the next big thing in how people get online. These displays can access the internet without additional hardware, allowing users to shop, play games and pay their bills online from their living rooms. Smart TVs also typically tout low-price tags, which has sparked intense competition among domestic players. Skyworth faces an uphill battle recovering its former glory due to Xiaomi’s strength in the space, industry analyst Liu Buchen said.
According to industry tracker Sigmaintell, Xiaomi boasted sales of 3 million TVs in the fourth quarter, surpassed Skyworth’s sales of 2.6 million for the first time to become the largest TV-maker in China by sales.