LCDs stay ahead of plasma in Middle East flat-screen TV race

Dubai: Flat screen TVs are all the rage in the Middle East and a winner is emerging in the battle between LCD (liquid crystal display) and PDP (plasma) sets.

Many leading consumer electronics companies at Dubai's Gitex exhibition say the global momentum is clearly with LCD sets, but they are refusing to ignore a strong regional market for plasma screens.

Top officials at South Korean electronics giant Samsung say total LCD sales in the Middle East and Africa region hit 100,000 units last year, a figure set to rocket to more than 500,000 this year and one million in 2007.

Global LCD TV sales are expected to hit 66 million next year, with plasma sets lagging behind with half as many unit sales.

According to David Steel, vice-president of the company's digital media business, Samsung's regional market share for LCD sales is 30 per cent this year.

"GCC growth is outstripping our global rates," he said. "We're really trying to build the Samsung brand as the leader for digital TVs in this area. There's no better time for this to happen with the way the market is growing now."

Despite the market favouring LCD technology, the company says it will split its research and development expenditure between both forms.

"The picture quality for plasma sets is good and the price is very competitive. LCD provides a sharper and brighter image, but plasma is softer and considered better for motion," he said.

"Many people in the Middle East opt for larger screens (where plasma screens are cheaper than the LCD size equivalent) so the mix between the two is still good."

Technological advances have seen LCD sets close the gap on plasma screens in terms of maximum size, contrast ratio and response time.

"Three years ago each had various deficiencies and people were hesitant to buy. LCDs had problems over motion response and there were issues of life time for plasmas," said Steel.

"Although there is still room for improvements, these deficiencies have been solved, so the main differences are in terms of size and price."

Samsung's South Korean rivals LG Electronics claim to be the market leader in the GCC's plasma screen market, but struggle to compete with market leaders for LCD sets.

Company officials admit consumer preference for LCDs has forced them to change their focus, but say company sales and investment into research and development is still even for both forms.

Chi Yoon Kim, manager of LG's TV division, says the company sold 9,000 units in the GCC last year compared to 10,000 plasma screens.

He said the figures will turn on their heads when this year's sales figures are released, with LCD sales set to reach approximately 26,000 and plasmas at 17,000. "We are aiming to make up the difference with our rivals for LCD sets," he said.