US consumer purchases of LED-backlit LCD-TVs doubles in Q1

EL SEGUNDO, USA: Lured by declining prices and increased availability, US consumers significantly increased their purchasing of LED-backlit LCD TVs in the first quarter of 2010, resulting in a doubling of market share for these products compared to the fourth quarter of 2009, according to consumer preference surveys conducted by iSuppli Corp.

LED-backlit LCD-TVs, also known as LED-TVs accounted for 12.1 percent of all televisions purchased by consumers in the United States in the first quarter of 2010, up from 6.1 percent in the fourth quarter of 2009, as shown in the figure.Source: iSuppli, USA.

LED-TVs make use of light-emitting diodes to provide backlighting of LCD panels, in contrast with conventional LCD-TVs using the older Cold Cathode Fluorescent Lamp (CCFL) technology.

While the share of LED-TVs has risen consistently since the introduction of the technology last year, the doubling in the first quarter marks the biggest jump yet.
In comparison, the share of LCD-TVs using CCFL backlighting fell to 74.4 percent in the first quarter, down from 79.7 percent in the fourth quarter. Plasma television panels continued to hold steady at the 12 percent level, while rear-projection TVs and tube-type CRT-TVs were all but dead categories.

“The growing popularity of LED-TVs can be attributed to their increased availability and declining prices, according to iSuppli,” said Riddhi Patel, principal analyst, television systems, for iSuppli.

“From initially being available only at Consumer Electronics (CE) retailers and online stores, LED-TVs now can be bought at club stores, such as Costco Wholesale Corp., and in mass merchandisers, like Wal-Mart Stores Inc. Moreover, both value and premium brands have started offering LED-TVs in smaller models—including the 19-, 22- and 24-inch sizes—broadening their appeal and accessibility.

“Furthermore, prices of LED-TVs declined on average by 19 percent from $2,380 in the fourth quarter of 2009 to $2,040 in the first quarter of 2010. As of April 2010, average pricing for LED-TVs was further down to $1,830—an astonishing 50 percent decline from a year earlier.

Current LED-TV prices carry a smaller price premium compared to LCD-TVs using CCFLs, an important factor in the growing enthusiasm of the populace for the new sets, iSuppli surveys show.”

Compared to CCFL-backlit LCD-TVs, LED TVs consume less electricity, possess an even thinner form factor, and generate a smaller amount of pollution to the environment during their manufacture, Patel added.

Many LED-TVs also include the newer features and technologies that appeal to consumers wishing to upgrade from older sets. Such features include higher refresh rates, 3-D capability, and built-in Internet connectivity for easy Web access, entertainment and even social networking on sites such as Facebook and Twitter.

Source: iSuppli, USA.