TV shipments in China are expected to take a hit in the third and fourth quarters of 2013 largely due to the discontinuation of LCD TV subsidies by the local government, which also means that the proportion of TVs shipped in the nation during the second half of the year will drop to about 50% of overall shipments for the year, down from original estimates of 60%.

　　The subsidies played a major role in increased TV sales in China throughout 2012 into late May 2013 and were thought to carry over into the second half when TV shipments were expected to be even stronger. Market observers therefore thought the shipment proportion of overall TV shipments in China was to be 40% in the first half of 2013 and 60% in the second half.

　　However, since the discontinuation in June market observers believe the proportion will be 50% for both the first and second halves of the year, despite an expected busy shipment period during the October 1 holidays in China.

　　Amid this trend and with demand among local consumers in China for larger-size units improving, TV vendors in China are looking to produce larger-size units to increase profits, as well as units with more value-added features and increased resolution such as Ultra HD.

　　Meanwhile, market observers said they believe China-based Xiaomi's recently announced 47-inch TVs that runs the company's version of Android called MIUI, is likely to pose significant challenges for local TV vendors as the unit will be priced CNY$2999 yuan (US$486) once it arrives in October.