Wednesday, July 1, 2009

India LCD-TV shipments to surpass CRT in 2012

EL SEGUNDO, USA: Shipments of LCD-TVs in India are set to surpass those of CRT-TVs by 2012 as the country undergoes a rapid transition to the flat-panel technology, according to iSuppli Corp.

LCD-TVs in 2012 will account for 49.1 percent of India’s television shipments, or 9.5 million units—up from 4.6 percent, or 15.1 million, in 2008. CRTs’ share of total Indian television shipments in 2012 will decline to 49.1 percent, or 9.3 million units—down from 95 percent, or 15.1 million units, in 2008.

“The rise of LCD-TV shipments in India is due to declining prices, increased consumer awareness and adoption, and an ongoing effort to promote the product by brands and retailers,” said Riddhi Patel, principal analyst, television systems for iSuppli. “Meanwhile, CRTs are suffering a decline in worldwide production that is causing their supply chain to wither.”

With the transition to LCD-TV, India will follow in the footsteps of other regions. The developed economies of the United States and Europe saw their LCD-TV shipments exceed those of CRTs in 2007, while Japan made the transition in 2006.

The figure presents iSuppli’s shipment forecast by technology for the Indian TV market for the period of 2006 through 2013.

iSuppli: Indian TV Shipments Forecast by Display Technology, 2006-2013 (Thousands of Units)Source: iSuppli, July 2009

LCD-TV shipments are also set to exceed those of CRTs in China this year, thanks in part to a government stimulus programs established to help the country manage the worldwide economic downturn.

“Much like the other regions of the world, Indian consumers are discovering the benefits to moving to flat-panel technology for their televisions,” Patel observed. “Indian consumers are intrigued by the space savings, improved picture quality and attractive form factor of LCDs.”

LCD-TV purchasing also is being boosted by the transition from analog to digital networks in the country, the adoption of Internet Protocol Television (IPTV) and Direct To Home (DTH) satellite technologies as well as increased desire for High-Definition (HD) programming.

Not buying local
Despite the high growth expected for LCD-TVs, it is unlikely that India will witness future growth in domestic LCD panel and module production. This is because the shipment growth, although substantial, is not of sufficient volume to justify opening a design or manufacturing center.

While it is true that Samsung, LG and Dixon have opened manufacturing facilities in India, most of these operations have been limited to final assembly.

“Unless the demand in India skyrockets, localized LCD-TV production will not be feasible, especially since Korean and Chinese LCD manufacturers prefer to produce their products in their own facilities,” Patel said.

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