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LCD TV Shipment Growth Falls to Record Low in Q2’11 as Global TV Demand Softens Further

Thu, 08/25/2011 - 4:26am
General Electric

LCD TV Shipment Growth Falls to Record Low in Q211 as Global TV Demand Softens Further

Global TV Shipments Dropped 1% Y/Y While LCD TV Posted Record Low 6% Y/Y Growth

Santa Clara, California, August 25, 2011Global TV shipments were soft in Q111 as the worldwide TV supply chain digested excess inventory, but growth was still up 1% Y/Y. In Q211, TV shipment growth turned negative, declining 1% Y/Y and falling more than 6% Y/Y in developed regions, which more than offset 3% growth in emerging markets according the latest DisplaySearch Quarterly Advanced Global TV Shipment and Forecast Report. Softer price declines and inventory pressure at retail due to lackluster consumer demand continue to put pressure on TV brands.

Q210 was a very strong shipment growth period due to greater price erosion and more confident consumers, so the comparison of this years shipments to a year ago is tough, especially considering the surge of shipments in early 2010 due to anticipated demand related to the World Cup Soccer tournament. noted Hisakazu Torii, Vice President of TV Research at DisplaySearch. Torii added, Due to weakening macro-economic conditions, similar to what happened during the global financial crisis of 2008-2009, the TV industry is becoming somewhat pessimistic and reducing inventory, especially in North America and Western Europe.

LCD TV shipments worldwide grew at least 20% each quarter in 2010, but so far have only risen 9% Y/Y in Q111 and 6% Y/Y in Q211. The slowing growth has impacted both developed and emerging markets, with LCD TV units falling 5% and rising 19% respectively, both well below the rate of growth a year earlier. The main inhibitor to faster LCD TV price erosion, something that has a strong positive impact on consumer demand in the highly elastic TV market, has been the transition from CCFL to LED and slower component pricing declines. LED share increased from 18% of LCD TV shipments in Q210 to more than 43% in Q211, but still carries a 74% average premium across all sizes, though this is down from a 120%+ premium a year ago. Critical LED backlight cost breakthroughs have been slow to materialize.

Plasma TV shipments had shown surging growth in 2010, increasing a remarkable 30% Y/Y after negative growth in 2009. The boost in growth had a lot to do with market pricing advantages against LCD for similar sizes and consumers who continued to focus on price. LCD TV prices started to narrow the gap this year, and the premium for a 42 class CCFL LCD narrowed from 13% in Q210 to less than 1% in Q211 over plasma, which is having an impact. Plasma TV shipments fell 6% in Q211 after double digit growth throughout 2010.

Table 1: Q211 Worldwide TV Shipments by Technology (000s)

Technology

Q2'11

Units

Q211

Unit Share

Q/Q

Growth

Y/Y

Growth

LCD TV

44,469

80.1%

1%

6%

PDP TV

4,236

7.6%

16%

-6%

OLED TV

0.1

0.0%

-69%

-78%

CRT TV

6,796

12.2%

-7%

-31%

RPTV

24

0.0%

-47%

-8%

Total

55,525

100%

0.4%

-1%

Source: DisplaySearch Quarterly Advanced Global TV Shipment and Forecast Report

By region, China was still #1 by a small margin over North America, each representing about 17% of global TV shipments. China had stronger growth, rising 10% Y/Y compared to a 6% decline in North America. The Asia Pacific region grew to #3 for the first time, surpassing Western Europe, where retail inventory remains a problem. Despite concerns about weak demand following the Great Japan Earthquake, shipments of TVs in Japan surged 40% as consumers replaced older TVs with newer digital tuner equipped models ahead of the July 24 analog broadcast cutoff.

LED Backlight Share Increases to 43% of LCD TV Shipments; 3D Accounts for 9% of Total TV Units and 23% of Revenues, About Twice as High as Previous Quarter

As TV brands and retailers continue to push for the transition to LED backlights in LCD TVs, due to both premium prices and better energy consumption, the growth in shipment share continues to rise, reaching 43% in Q211. 98% of LED-backlit LCD TV shipments were edge-lit models due to slimmer form factor, lower power consumption and lower cost. Japan and Western Europe have already surpassed 50% of LCD TV shipments as LED and China is nearly at 50%. Most other regions, including North America, have around 20-35% of LCD TV shipments as LED.

3D enjoyed a sizeable increase in market share during Q211, rising from 4% of shipments in Q1 to almost 9% in Q2. The growth in share signifies that manufacturers have greatly expanded the number of 3D-capable models and reduced the premium associated with the technology, giving consumers more choice. There have also been a wider range of new sizes, down to 32, and in the case of LCD, lower frame rate models with 3D available. DisplaySearch estimates that about a quarter of 3D TV shipments use passive 3D technology and the remainder use active shutter glass technology.

Samsung Remains #1 Global TV Brand, Still Leading in LCD but Falling to #2 in Plasma Units

Samsungs global flat panel TV revenue share was up slightly in Q211 to 22.6%, a substantial lead over #2 brand LGE. Samsung was the #1 brand on a revenue basis in almost every region, with the exception of Japan and China where domestic brands dominate, even surpassing LGE in Asia Pacific markets. Samsung was also #1 in LCD revenues and #2 in both plasma and CRT TV revenues. Samsung also regained the #1 LCD TV unit share position in Q211 from Vizio for the first time in over a year.

LGE was the #2 brand worldwide at 14.4%, nearly unchanged from the previous quarter. In terms of revenues, LGE was #3 in LCD TV and plasma TV, but led in CRT TV with more than double the revenue share of any other brand. Sony remained the #3 brand in global flat panel TV revenues during Q211, with a small increase in share. Sharp and Panasonic rounded out the top 5, trading share positions again compared to last quarter, mainly through the addition of Sanyo to Panasonics global TV business.

Samsung was the #1 global 3D TV brand overall, accounting for all technologies, with 35% of revenues. Within the 3D LCD TV category, Samsung overtook Sony for the top revenue share at 35% while Panasonic reclaimed the 3D plasma TV revenue share lead at 48%.

Table 2: Q211 Worldwide Flat Panel TV Brand Rankings by Revenue Share

Rank

Brand

Q1'11

Share

Q2'11

Share

Q/Q

Growth

Y/Y

Growth

1

Samsung

22.2%

22.6%

11%

-10%

2

LGE

14.5%

14.4%

8%

-1%

3

Sony

11.4%

11.7%

12%

-11%

4

Panasonic*

6.6%

9.4%

55%

2%

5

Sharp

7.4%

7.0%

1%

6%

 

Other

36.6%

34.8%

-1%

1%

 

Total

100.0%

100.0%

8%

-3%

Source: DisplaySearch Quarterly Advanced Global TV Shipment and Forecast Report

* Includes Sanyo in Q211

DisplaySearch TV market intelligence, including panel and TV shipments, TV shipments by region, brand, size, resolution, frame rate and backlight type for nearly 60 brands, rolling 16-quarter forecasts, TV cost/price forecasts and design wins can be found in its Quarterly Advanced Global TV Shipment and Forecast Report. For more information on this report, please contact Charles Camaroto at 1.888.436.7673 or 1.516.625.2452, or contact@displaysearch.com or contact your regional DisplaySearch office in China, Japan, Korea or Taiwan.

About DisplaySearch

Since 1996, DisplaySearch has been recognized as a leading global market research and consulting firm specializing in the display supply chain, as well as the emerging photovoltaic/solar cell industries. DisplaySearch provides trend information, forecasts and analyses developed by a global team of experienced analysts with extensive industry knowledge. In collaboration with The NPD Group, its parent company, DisplaySearch uniquely offers a true end-to-end view of the display supply chain from materials and components to shipments of electronic devices with displays to sales of major consumer and commercial channels. For more information on DisplaySearch analysts, reports and industry events, visit us at http://www.displaysearch.com/. Read our blog at http://www.displaysearchblog.com/ and follow us on Twitter at @DisplaySearch.

About The NPD Group, Inc.

The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,800 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us or visit http://www.npd.com/ and http://www.npdgroupblog.com/. Follow us on Twitter at @npdtech and @npdgroup.

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