Large TV sales shine as price plunge at Gitex

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Large TV sales shine as price plunge at Gitex

86 per cent of the UAE are hooked to their TV sets every day

By Waheed Abbas

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Published: Sun 24 Sep 2017, 4:41 PM

Last updated: Sun 24 Sep 2017, 6:46 PM

Large-screen television prices have dropped substantially of late and are much in demand from sports and movie buffs, according to industry executives.
"We're quite confident about sales of large screen TVs because people are upgrading their TV sets are prices have halved. We are talking about upgradation from 48" and 55" to 75" to 85". Earlier, 85" inch TV used to be around Dh40,000 to Dh50,000 and now all 85" TVs are selling below Dh20,000. These are fantastic deals. Then you have the OLED TVs which were Dh10,000-plus but now they have come down to an affordable range of Dh8,000. So I hope a lot of people will upgrade to ultra large screen," according to Nadeem Khanzadah, head of Omani Channel Retail at Jumbo.
He said: "Few years back, we used to talk about upgrade from 40" to 50" and 60". But now we are talking about 60" to 75" and even 85"."
Deepak Babani, Executive Vice Chairman, Eros Group, the large-screen sales have been continually growing for the past 12 months. "55" is now the most popular size in the country. The large size panel market now accounts for near 40 per cent of quantity sale and 60 per cent of value sale making it a must-be-in category."
A study conducted by global research consultancy TNS had forecasted that 86 per cent of the UAE are hooked to their TV sets every day - which is the highest in the world. Moreover, UEFA Euro 2016 figures showed that the UAE topped in TV viewership with 26 per cent followed by Saudi Arabia at 11 per cent. This reflects that the viewership of the TV - especially the sports event - is quite popular in the country. In addition, a crowds are also witnessed during mega football event on a number of café who put up large screen for their visitors and football fans. In addition, hotels in Dubai also put up large screens during the cricket events, charging visitors to watch the match of their favourite teams. All these events also help drive the sales of the large screen televisions higher in addition to the demand from individual buyers.
"One of the main factors," according to Babani, "for the increased sales is attributed to falling prices on FHD (full-high definition) and UHD (ultra-high definition) TVs with the entrance of Super Ultra High Definition and OLED TVs which are making the TVs affordable. Also leading Chinese brands like TCL are making strong inroads with latest technologies and features into this category and garnering huge share in the fast growing 55-inch segment," Babani added.
With value-added tax (VAT) coming into effect in 2018, the net price to consumer will go up by five per cent making even the Ultra-High Definition TVs dearer by up to Dh185, he added.
Jumbo's Khanzadah revealed that most of the demand is coming from the residents who keenly watch sports and movies at homes.
"Surprisingly, the number of people purchasing large TVs are not small. The demand is especially from people who prefer to watch sports and movies on large screens," he added.
According to Nilesh Khalkho, CEO, Sharaf DG, 55-inch TVs and above - especially in UHD Smart segment - have shown healthy growth over last year while 75-inch and above segment have been growing quite fast since prices are coming down.
"Reduction in average selling prices - especially in 65-inch and above - has driven the sale which led to customers upgrading the sizes of their TVs. Prices of 75-inch TVs have been falling in the last few months. The cheapest 75-inch TVs of high-end brands like LG, Samsung and Sony cost approximately Dh11,647 in January, which are now being sold for Dh6,999. Overall, strategy is to keep pricing on large panels attractive to get people to upgrade. As per market research data, our average selling prices on 75-inch and above TVs have been at least 15 per cent lower than competitors in the last few months," he added.
Khalkho sees OLED TVs are on a growth trend after a slow start, but the customer acceptance of this technology has resulted in good growth. With prices coming down, the increased affordability will see spike in upgrade in the next 12 months.
- waheedabbas@khaleejtimes.com



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