Dubai: Prices of ultra high-definition (UHD), also known as 4K, TVs are selling 50 per cent lower than last year’s prices due to mass production and competition.
The 4K TVs boast a pixel format of 3840 x 2160 pixels, four times that of current 1920 x 1080p Full HD TVs, and have greater clarity and depth.
The price of a 55-inch 4K TV during last year’s Dubai Shopping Festival was Dh12,999 and now it is selling for Dh5,999. One hypermarket is selling the same-sized TV for Dh3,999.
Retailer said that 4K TVs have become affordable for customers because of increased competition and bundled offers.
Ashish Panjabi, COO at Jacky’s Electronics, said that competition has been there not only among the Korean brands but also among Chinese brands.
“The trend has moved to 4K now and it is going to become the mainstream in the next two years. The production capacity has increased due to economies of scale,” he sad.
Retailers are reporting that 55- and 65-inch TV sizes as the sweet spots and volume drivers while better margins come from bigger screen-sized TVs.
With ICC Cricket World Cup 2015 happening in February, retailers see an additional boost coming from sports fans.
Nadeem Khanzadah, head of OmniChannel Retail at Jumbo Group, said that the next boom in TV technology after HD TVs was supposed to be 3D TVs. 3D TV technology did not take off due to lack of content and health-related issues. So manufacturers shifted their focus to 4K UHD TVs as the next feature. “We have customer bases for both [4K and LED TV] the technology. The first-time or replacement buyers will buy a 4K TV but a customer who opts for a second or third TV in his house will prefer a LED TV,” said Niranjan Gidwani, Deputy CEO of Eros Group.
He said that digital cameras, camcorders and gaming are happening in 4K and people are uploading it to YouTube. Therefore the content is increasing but the “real content” in the form of cinemas will take some time.
Panjabi said that even though 4K content is not available, by default the TV design is becoming 4K.
“Customers have been attracted by the much sharper and better resolution of these TVs and we see a great growth in these products. Since sales have been higher, prices are coming down at a faster rate and economies of scale,” Khanzadah said.
He said the same shift which happened from HD to Full HD TV is happening in the 4K TV space.
Retailers said that branded TVs attract much higher traction than the Chinese manufacturers but there are value-conscious customers who prefer value than the brand.
Khanzadah said that the quality of Chinese manufactures has improved substantially and can go head-to-head with Korean and Japanese counterparts.
By end of the year, retailers expect the 4K TV prices to be down by another 15-20 per cent.
By end of the year, Gidwani said that 4K TV will be 15 per cent higher than LED TVs and curved 4K TV will be 15 per cent higher than flat 4K TVs.
