The Chinese State Information Center (SIC) recently released a report about the Chinese flat-screen TV industry, which stated that production of these TVs is forecasted to reach 4.2 million units in 2006, up from the expected 1.9 million units in 2005. Of the 4.2 million units, three million units will be LCD TVs, while 1.2 million units will be PDP models. In 2005 domestic makers relied heavily on price-cutting to stimulate market demand for flat-screen TVs, and the SIC expects price wars to continue in 2006, affecting makers' profit margins. Foreign manufacturers are enjoying higher profit margins than domestic makers due to their superior control over component supply, and therefore they will be less affected by price wars in the industry.