Digital TV makers facing some strong competition

Korea’s digital television market, long the domain of local electronics giants Samsung Electronics Co. and LG Electronics Inc., is being bombarded by an influx of foreign TV makers who want their slice of the pie, and by mid-sized Korean companies trying to make names for themselves. Industry analysts said yesterday the dominance by Samsung and LG could face stiff challenges in the near future. Japan’s Sony will lead the charge starting Wednesday, when it is due to announce the release of its Bravia liquid crystal display TV in the Korean market. Bravia was first introduced in North America in August, and the name of the high-definition model stands for Best Resolution Audio Video Integrated Architecture. Sharp Electronics, also of Japan, is considering the introduction of 32-inch LCD sets, as well as a 65-inch LCD television with ultra-high definition resolution. The latter is the largest digital TV currently on the global market. Haier, the largest home appliance manufacturer in China, entered the Korean market this summer with 20-inch and 32-inch LCD sets, and plans to unveil 47-inch LCD televisions later this year. Industry analysts said foreign computer manufacturers, such as Dell and Hewlett Packard, have also shown interest in the Korean digital TV market. While the foreign invasion is underway, smaller local competitors have not remained idle, focusing on lowering the cost of production and on raising their brand recognition level. Digital Device Inc., a Seoul-based digital TV maker, reported record monthly sales in October of 10 billion won ($9.6 million). Seoul’s Erae Electronics Inc. and Gumi, North Gyeongsang province-based Diboss have extended their distribution networks to discount stores and electronics retailers such as Himart. Daewoo Electronics Corp. plans to introduce a new 32-inch slim Braun tube television model, and then a 40-inch LCD set early next year. “Unlike in other home appliances such as washing machines and refrigerators, leading manufacturers in the TV market are dealing with some strong competition,” said an industry analyst, adding that if the market leaders start cutting prices, their rivals could follow suit. by Lee Chul-jae