(Yicai) June 5 -- Chinese television manufacturers have reduced their prices by over 10 percent on larger models and roughly 30 percent on smaller sets for this year’s 618 shopping festival amid intense competition and buoyed by government trade-in subsidies.

The cuts have taken prices of typical TVs below those seen during the 11.11 shopping festival early last November, Zhang Hong, deputy general manager of Sigmaintell Consulting's large display division, told Yicai. Prices of 55-inch TVs or bigger have fallen 10 percent, Zhang said.

Small and mid-sized TV prices are down about 30 percent from the first half of last year when the government’s trade-in subsidies for home appliances -- introduced in the second half of 2024 -- are factored in, according to Zhang Bing, research director for China at tech advisory group Omdia.

Nevertheless, because sales of higher-priced, premium products have risen, overall revenue from TV sales during the 618 shopping festival, which runs from May 13 to June 18, are still expected to achieve year-on-year growth, Zhang Bing predicted.

Revenue during the mid-year shopping gala is expected to jump about 15 percent from a year earlier, according to Liu Fei, research director of the consumer electronics department at market consultancy AVC.

As price competition further squeezes profit margins, leading TV brands are looking for ways beyond price cuts, such as differentiated new products, to catch the consumer’s eye. Offering consumers better picture quality and viewing experiences for the same price is becoming key to gaining a competitive edge, a representative from TCL Technology Group told Yicai.

Today’s TV sets are defined by smarter functionality, larger screens, and better energy efficiency, a representative for Hisense Group told Yicai. “Whichever brand upgrades its products quicker and offers higher specifications and better quality will be more favored by consumers,” they said.

Compared with previous years, high-end large-screen models, TVs with mini light-emitting diode screens, and high-refresh-rate sets have become much more popular this season, Liu said.

Aggressive price cuts could hurt the earnings of TV screen manufacturers, Zhang Hong noted. She warned that if TV sales during the 618 shopping event fall short of expectations, TV makers will buy fewer screens, making it harder for screen makers to maintain capacity utilization and stabilize screen prices.

Editors: Tang Shihua, Futura Costaglione