Why are color TV manufacturers so keen on 4K? Gross profit margin exceeds 30%

Introduction: The World Cup has made 4K TV a hot topic. Although Chinese audiences are currently unable to watch the 4K version of the World Cup at home, surveys show that Chinese consumers' awareness of 4K TV has reached an all-time high. At the same time, color TV manufacturers and home appliance merchants are also vigorously promoting 4K TVs through the World Cup. Behind this 4K craze, Beijing Youth Daily reporters have discovered the secret of the merchants' enthusiasm for promoting 4K TVs through the interpretation of the financial reports of color TV manufacturers - selling 4K TVs is more profitable.

Industry insiders believe that the price of 4K smart TVs will undoubtedly become lower and lower, and the popularity rate will correspondingly increase.

Gross profit exceeds 30%, 4K TV has the most lucrative profits

Skyworth Digital, listed in Hong Kong, recently announced its performance report for the 2013 fiscal year (April 2013 to March 2014). Although the performance of this financial report is completely consistent with the general trend of China's color TV industry showing a gradual decline after reaching the peak, some details show that emerging technologies such as 4K and smart have a significant driving effect on the performance of color TV companies - this situation also exists in several other major color TV giants in China. Beijing Youth Daily reporters noticed that a set of data disclosed by Skyworth in the financial report showed that according to the types of color TVs sold last year, 4K smart TVs, smart TVs, and 2K ordinary TVs, the average sales price and gross profit margin of these three types are very different.

Data shows that last year, the average price of Skyworth's 2K regular TVs was 2,143 yuan, smart TVs were 4,166 yuan, and 4K smart TVs were as high as 6,037 yuan. In terms of gross profit margin, the differences between these three types of TVs are even greater, ranging from 14.6% for 2K regular TVs to 24.6% for smart TVs and 31.7% for 4K smart TVs.

When interpreting the financial report, Yang Dongwen, president of Skyworth Digital, admitted that it is difficult to make a real profit from ordinary 2K TVs with a gross profit margin of less than 15%. Therefore, all color TV manufacturers are vigorously developing smart TVs to increase profits, and the most profitable ones are 4K smart TVs, with a gross profit margin of more than 30%. "Therefore, we hope that consumers will buy more of our 4K TVs!" Yang Dongwen said.

Sales volume is inversely proportional to price. 4K TVs are not selling well.

However, due to the high prices, the sales of these three types of TVs are inversely proportional to the prices. Skyworth's financial report shows that among all the TVs it sold last year, smart TVs accounted for 31%, which means that nearly 70% of the TVs sold were still ordinary TVs. Among this 31%, the sales of 4K smart TVs accounted for only 7%.

Yang Dongwen admitted that the high price is the biggest obstacle to 4K TVs entering households. However, he said that judging from the conventions of the color TV industry, the price drop year after year is the main theme of the industry, so the price of 4K smart TVs will undoubtedly become lower and lower, and the popularity rate will also increase accordingly. Financial report data shows that the average sales price of ordinary 2K TVs in fiscal year 2012 was still 2,578 yuan, which was a 17% drop last year; the average price of smart TVs in fiscal year 2012 was 5,334 yuan, which was also a 22% drop last year. Since 4K TVs were not yet on the market in 2012, there is no data on the drop, but Yang Dongwen said that due to the high price base, the price drop should not be less than 22%.

Saving electricity is very important. Experts give you 4 steps to choose a 4K TV

The concept of 4K TV is becoming more and more popular, and there are more and more products claiming to be 4K TVs on the market. However, careful consumers will find that there are still some differences between 4K TVs of different brands. So how should consumers choose 4K TVs? LG Display is one of the world's major suppliers of 4K TV panels. Currently, many 4K TVs of domestic and foreign brands on the market use LG Display's 4K LCD panels. Cui Dongyuan, the company's global promotion president, introduced several tips for consumers to choose 4K TVs in an interview with a Beijing Youth Daily reporter.

The first thing is to confirm the 3D viewing experience. He introduced that 4K TVs above 55 inches can bring consumers a cinema-like realistic effect, so choosing more comfortable and lightweight 3D glasses and TV products with more comfortable flicker-free 3D display technology is more suitable for family viewing of 3D programs. The second thing consumers should pay attention to is the viewing angle. A good 4K TV should be able to show consistent color performance whether it is viewed from close up, far away, frontally or sideways, and will not produce color difference or image deformation due to different viewing angles.

Third, since the screen resolution of 4K TVs has been greatly improved, the power consumption of TVs has also increased, so energy saving is even more important for 4K TVs. Consumers should pay more attention to the energy saving functions of 4K TVs when choosing, and refer to their energy efficiency labels. Fourth, when choosing a 4K TV, you should not only look at it with your eyes, but also walk up and tap the screen to see if the image flickers when your hand touches the screen. Generally, 4K TVs without flicker are better.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.