Samsung maintains worldwide LCD-TV lead in Q2

EL SEGUNDO, USA: Samsung Electronics Co. Ltd. in the second quarter maintained its lead in the global LCD-TV market, partly due to a surge in shipments of its LED-backlit sets, according to iSuppli Corp.

Samsung’s worldwide LCD-TV shipments for the second quarter amounted to 5.7 million units, up 605,956 from 5.1 million in the first quarter, the largest unit increase of all LCD-TV brands during the quarter. The 12 percent growth gave Samsung a market share of 18.5 percent.

“Samsung in the second quarter was very aggressive in introducing and marketing LCD-TVs that featured LED backlights,” said Riddhi Patel, principal analyst, television, for iSuppli. “This put Samsung at the forefront of this fast-growing technology trend, helping to boost the company’s sales during the period.”

Unlike traditional Cathode Ray Tube (CRT) televisions that generate their own light, LCD-TVs require an additional illumination source—or backlight—in order to present a visible image. LCDs historically have employed Fluorescent Lamps (CCFLs) as backlights. However, because of price reductions, LEDs in recent years have become a viable alternative to CCFLs.

LEDs deliver multiple advantages compared to CCFLs, including greater power savings, thinner form factors and the elimination of toxic materials employed in CCFL manufacturing.

Worldwide shipments of LCD TVs with LED backlights rose to 604,000 units in the second quarter, up 75 percent from 345,000 in the first. Shipments of such sets are expected to rise by 170 percent in the third quarter and by another 20 percent in the fourth quarter.

For all of 2009, shipments of LCD-TVs with LED backlights are predicted to reach 4.5 million units, up by more than a factor of 10 from 438,000 in 2008. By 2013, shipments will rise to 98.8 million, accounting for 42.5 percent of the global LCD-TV market.

Sales rise for both high-end and low-end LCD-TVs
Global LCD-TVs shipments rose to 30.7 million units in the second quarter, up 14.1 percent from 26.9 million in the first.

“Consumers in the second quarter continued to buy more LCD TVs despite the economic downturn due to the introduction of more advanced models and because of price declines for older sets,” Patel observed.

Consumers in developed economies who already have purchased flat-panel sets now are buying replacement or additional LCD-TVs that have enhanced features. In addition to LCD-TVs with LED backlights, these consumers are purchasing larger televisions and sets with faster refresh rates, i.e., 120Hz and 240Hz, which yield higher-quality pictures and superior presentation of fast motion.

Meanwhile, retail prices for older models declined in the second quarter, despite a glass shortage that has driven up pricing for some LCD panels. The price drops attracted first-time LCD-TV buyers, as well those with lower incomes and consumers in developing economies.

Global average selling price for all LCD-TVs remained flat in the second quarter compared to the first. However, pricing for the most popular size range for LCD-TVs, i.e., 30- to 34-inches, decreased by 4 percent sequentially in the second quarter.

“While panel prices may have risen, LCD-TV makers have taken some reductions on their margins to reduce pricing and maintain sales momentum,” Patel said. “Furthermore, in some cases, retailers are willing to compromise on their mark-ups to ensure the ongoing uptake of these sets.”

On a percentage basis, the fastest growth in the second quarter was achieved by LG Electronics, whose shipments rose by 20 percent to reach 3.5 million units, up from 2.9 million in the first quarter.

“LG’s strong growth was due to the company’s increased shipments to the emerging markets, where consumers are now looking at buying their first LCD TVs,” Patel said.

The figure presents iSuppli’s ranking of the Top-5 LCD-TV brands in the second quarter.

iSuppli: Quarterly Global Ranking of the World's Top-Five LCD-TV Brands (Ranking by Percentage of Global Unit Shipments)Source: iSuppli, Sept. 2009

Global LCD TV unit shipments stronger than expected

AUSTIN, TEXAS: In a nearly mirror image of Q1’09 results, global TV revenues fell 12 percent Y/Y to $23.7 billion while shipments declined slightly less, down 8 percent Y/Y to 44.6 million units according to the latest results from the DisplaySearch Quarterly Global TV Shipment and Forecast Report.

Not all technologies fared equally though as LCD TVs continued to post remarkably strong unit growth, while all other technologies showed Y/Y declines in units. However in revenue terms, all technologies were down Y/Y as the marketplace remains impacted by frugal consumers looking for the lowest prices amid the global economic downturn.

Globally, flat panel TV share jumped from 68 percent in Q1’09 to 74 percent in Q2’09 as LCD TV price erosion continued at the same annual pace as Q1’09, falling 22 percent Y/Y on average. LCD TV market share increased as a result from 62 percent to 67 percent, acquiring nearly all that market share in a rapid shift from CRT to LCD in China as well as a big increase in North America market share from better than expected sell-through.

Despite tight supply conditions for LCD panels in Q2’09, LCD TV shipment growth managed to maintain the same pace as Q1’09, rising 27 percent Y/Y to 30 million units although revenues fell 1 percent Y/Y. Plasma market share increased about half a percent to 7 percent, while CRT share plummeted from 32 percent to 26 percent on a unit basis. Both North America and China reached record shipment levels.

“LCD TV market growth remains impressive, gaining market share from incumbent technologies like CRT at a quickening pace despite higher prices and a tight supply situation in Q2’09” noted Paul Gagnon, Director of TV North America TV Market Research at DisplaySearch. “Advanced technologies like high frame-rate LCDs and 1080p resolutions also continued to increase in market share as the price premium narrows, even in these tough economic times.”

North America dramatically took back the top position among global regions for TV shipments on a unit basis while reaching more than 10 million units shipped for the quarter. North America reclaimed the crown from China where unit shipments fell 10 percent Q/Q and 14 percent Y/Y, mostly on a large decline in CRT TV unit volume that wasn’t entirely made up by surging LCD growth.

Western Europe continued to experience weakness with total units declining 3 percent Y/Y and was overtaken for the #3 market position by Asia Pacific. A review of global TV shipment performance by technology can be seen in Table 1:

Table 1: Q2‘09 Worldwide TV Shipments by Technology (000s)Source: DisplaySearch Quarterly Global TV Shipment and Forecast Report

On a brand basis, Samsung remained the global brand share leader in revenues for the 14th straight quarter, rising to a record revenue share of 23 percent and also hitting a record unit share of 18.2 percent. LGE remained #2 after surpassing Sony in Q1’09, slightly increasing their revenue share to 13.7 percent with small share gains in both LCD and plasma offsetting a decline in CRT share. Sony held the #3 brand position worldwide in revenues, although losing a little more than a point of share.

Samsung reclaimed the top LCD unit share position from Vizio in the highly competitive North America market. Vizio fell to #2 on a unit basis in LCD TV for North America, but continued to see strong growth from a year ago with distribution in the growing discount channels like Walmart.

Funai, which includes the Philips and Magnavox brand in North America, surpassed Sony and rose to #3, having the strongest Q/Q unit growth among the top five North America LCD TV brands. Funai is prospering from close strategy alignment with discount channels and more frugal consumers.

China remains a very competitive market as well, one dominated by domestic brands. The top five LCD TV brands in China on a unit basis are all Chinese and collectively account for nearly three-quarters of all units shipped to the region in Q2’09. Skyworth was the top LCD TV brand at nearly 20 percent unit share, but was followed closely by Hisense at #2. TCL rounded out the top three with 15 percent unit share.

Many foreign brands are eager to gain a foothold in China’s rapidly growing market, but must compete with lower-cost Chinese brands to do so. Chinese consumer demand is currently being boosted by several government stimulus programs and TV brands are eager to participate, especially domestic brands. A complete review of the top five global TV brands can be seen in Table 2:

Table 2: Q2‘09 Worldwide TV Brand Rankings by Revenue ShareSource: DisplaySearch Quarterly Global TV Shipment and Forecast Report

Earthquake causes minor disruption in LCD glass supply

EL SEGUNDO, USA: An earthquake in Japan this month at a plant operated by Corning Inc. will slightly exacerbate an existing shortage of glass for LCDs, but the impact is not likely to have a major impact on panel supply during the holiday season, according to iSuppli Corp.

“Because of the earthquake, Corning has suspended production at its glass manufacturing facility in Shizuoka, Japan,” said Sweta Dash, senior director of LCD research for iSuppli.

“This supply interruption will disrupt LCD production at Sharp. Corp.’s eighth-generation fab, which supplies panels for 32-inch and 40-inch as well as larger LCD-TVs. However, with glass suppliers increasing their output to meet rising demand for Christmas, the overall demand for this key raw material is expected to exceed demand by the start of the fourth quarter.”

All other LCD glass facilities operated by Corning and other glass manufacturers worldwide continue to operate normally. Corning expects to restore its Shizuoka facility to full production within a few months.

LCD glass supply has been in a state of oversupply since the second half of 2008.

After suffering a supply glut of 13 percent in the fourth quarter of 2008, conditions shifted dramatically in the first quarter of 2009 as panel makers idled many of their production lines in order to adjust to reduced demand. This caused demand to exceed supply by 0.5 percent in the first quarter.

The undersupply rose to 1 percent in the second quarter primarily due to strong panel demand, especially from China’s television market. The shortage is expected to intensify in the third quarter to a 2 percent undersupply, before reversing to a 4 percent oversupply in the fourth quarter as panel demand cools following the holiday purchasing season.

Demand-driven shortfall
While the glass shortage has contributed to tight availability of large-sized LCD panels, the major factor behind the short supply is strong demand.

“In a positive sign for the global large-sized LCD market, panels are in short supply mainly due to strong demand from television and PC makers that are building supply in advance of the Christmas selling season,” Dash said. “This indicates that computer, monitor and LCD-TV makers are anticipating strong demand during the upcoming holiday season.”

iSuppli defines large-sized panels as those having a diagonal dimension of 10 inches or more. Aggravating the shortage, LCD panel buyers are engaging in overbooking, i.e., placing more orders than they really need, in order to secure supply in the face of limited availability and despite some increase in inventories among channels and buyers.

Taiwanese troubles
Beyond the direct impact on Sharp, some Taiwanese suppliers are concerned that their supplies may be impacted if glass shipments are diverted to Japan.

The Taiwanese suppliers already were bearing the brunt of the glass shortage at their older fifth- and sixth-generation LCD fabs. Such fabs specialize in producing smaller displays used in products like desktop monitors, notebook PCs and smaller-sized televisions.

Glass supplies get clearer
“Fortunately for the global large-sized LCD panel industry, the Corning supply disruption is coming at a time when most of the idled glass tanks in the world are starting to come back to full production mode,” Dash said. “That will help to reduce the total impact on LCD panel supply.”

Previously idled glass tanks are expected to return to normal production levels by the end of August. In the fourth quarter, most of the glass issues are expected to be resolved, allowing panel suppliers to operate at full production levels.

Because of this, many panel suppliers are already planning expansions of their newer eighth- , 8.5- and tenth-generation fabs in the fourth quarter.

Prices affecting profitability?
The combination of strong demand and short supply caused large-sized panel prices to rise sharply during July. For example, the price of a representative large-sized LCD, the 32-inch WXGA television panel, climbed 10.4 percent in July. The price increase moderated to a 5.8 percent rise in August.

The figure presents average global pricing for 32-inch WXGA LCD panels for the period of October 2008 through August 2009.

iSuppli: Global Average Pricing for 32-inch WXGA LCD TV Panels (Pricing in US Dollars)Source: iSuppli, Aug. 2009

“The increase in pricing is certainly welcome news for panel suppliers especially after facing several quarters of pricing below manufacturing costs,” Dash said. “However, at this point it comes as bad news for branded vendors of televisions, desktop PC monitors and notebooks, as their profitability is being squeezed by rising panel prices.”

iSuppli already is noting that monitor and TV system makers are suffering losses in profitability due to these hikes. As a result, some panel buyers have become conservative about building their panel inventories and are resisting accepting any sharp price increases. This is causing price hikes to moderate somewhat in August.

“iSuppli anticipates a downward price correction in the fourth quarter as LCD panels return to a state of oversupply,” Dash said. “This correction could be of a greater magnitude than the industry expects.”

Samsung cuts into Vizio's lead in US LCD TV market

EL SEGUNDO, USA: While Vizio Inc. maintained its leadership in the US LCD-TV market in the second quarter, No.-2 ranked Samsung Electronics Co. Ltd. closed the gap significantly as buyers gravitated toward its LED-backlit sets, according to iSuppli Corp.

Samsung’s share of US LCD-TV unit shipments rose to 21.3 percent in the second quarter, up 3.5 points from 17.8 percent in the second quarter. The gain represented the largest increase of any LCD-TV brand in the United States in the second quarter. With its strong rise, Samsung of South Korea in second quarter cut Vizio’s lead to only 0.4 percentage points, down from 3.6 points in the first quarter.

“Samsung in the second quarter was very aggressive in introducing and marketing its LED-backlit LCD-TVs, allowing it to boost sales of these sets,” said Riddhi Patel, principal analyst, television systems, for iSuppli.

“US consumers increasingly are warming up to higher-specification LCD-TV models, including those using new LED-backlighting technology,” Patel added. “iSuppli estimates 2.2 percent of LCD-TVs shipped in the US in the second quarter used LED backlights, up from zero during the same quarter a year earlier.

“In mature markets like the United States, while many consumers are moving up from their CRT or rear-projection televisions, an increasing number of LCD-TV purchases are replacements of first-generation flat-panel sets. In these cases, consumers are gravitating toward higher-specification televisions, such as those with LED backlights.”

Unlike traditional Cathode Ray Tube (CRT) televisions that generate their own light, LCD-TVs require an additional illumination source—or backlight—in order to present a visible image. LCDs historically have employed Fluorescent Lamps (CCFLs) as backlights. However, due to price reductions, LEDs in recent years have become a viable alternative to CCFLs.

“LEDs deliver multiple advantages compared to CCFLs,” Patel said. “These include achieving greater power savings and thinner form factors for LCD-TV sets and the elimination of toxic materials employed in CCFL manufacturing.”

Global penetration of the LED-backlight technology for LCD-TV panels will increase to 37 percent of all shipments in 2013, up from 3 percent in 2009, iSuppli predicts.

Vizio retains market lead
Despite Samsung’s surge, Vizio retained leadership in the US LCD-TV market for the second consecutive quarter.”

“US-based Vizio continues to benefit from its combination of low-cost and full-featured sets, combined with its high-volume retail channels, including Wal-Mart,” Patel said. “The company seems to have found the right balance between price and features that appeals to many consumers.”

US LCD-TV market rebounds in Q2
The overall US LCD-TV market posted a strong performance in the second quarter, with shipments rising by 8.7 percent to 6.9 million units, up from 6.3 million in the first quarter. This represents a major turnaround from the first quarter, when shipments plunged by 15.3 percent.

“While sales of consumer electronics often decline in the first quarter compared to the hot holiday season in the fourth quarter, LCD-TVs have been so popular that they have defied this trend in recent years,” Patel said.

“For example, US television shipments rose by 5 percent sequentially in the fourth quarter of 2008. And even though the economic downturn clearly had a major impact on sales in the first quarter, the rebound in the second quarter shows the market has entered a recovery.”

Beyond demand for LED-backlit sets, second-quarter demand was stimulated by declining prices for older models.

New Energy Star guidelines spur changes in LCD TV design

EL SEGUNDO, USA: New US Environmental Protection Agency (EPA) guidelines call for the energy consumption of some televisions to be cut by as much as two-thirds by 2013, compelling the LCD-TV supply chain to implement changes in its products and components, according to iSuppli Corp.

The EPA’s Energy Star Program Requirements for TVs: Version 3.0, which went into effect in November 2008, are guidelines that impact on-mode power consumption limits for TVs.

The EPA believes Version 3.0 of the regulation can reduce energy demand by millions of kilowatt hours per year. The EPA guidelines for TV on-mode power limits will grow more stringent over time with Tier-1 limits now in effect, moving to more restrictive levels during the Tier-2 and Tier-3 phases in 2010 and 2012, respectively.

“While not mandatory, these guidelines are likely to spur major changes in television design as brands move to maintain the coveted Energy Star label on their sets,” said Randy Lawson, senior analyst for digital TV and display electronics at iSuppli.

“The larger the television size, the more power consumption should be cut to comply with the guidelines.” For 26-inch sets, Lawson noted maximum power consumption when the television is turned on should be reduced to 42.3 watts by 2013, down 52.8 percent from 89.7 watts in 2008.

For 50-inch sets, on-mode power consumption should be reduced to 106.9 watts in 2013, down 66.3 percent from 317.5 watts in 2008.

The figure presents the EPA’s on-mode power limitations for televisions in the coming years as well as the schedule for phasing in different tiers of power-consumption limits for TV makers.Source: EPA/iSuppli, July 2009

Large LCDs mean large energy usage
Television power consumption is soaring mainly due to the transition from CRT to LCD display technology, as well as the resultant shift to larger screen sizes.

At screen sizes smaller than 26 inches, only a small difference exists between the power consumption of the two television types. However, LCD-TVs in the popular 37- , 40- , 42- and 50-inch sizes have dramatically greater power consumption than the
smaller CRT-TVs, which max out at the 35-inch dimension.

Previous global standards, including earlier versions of the Energy Star regulations, focused on reducing power consumption only during the off and standby modes. However, the new requirements focus on the on-mode, in which televisions consume the most power.

The Energy Star Program Requirements for TVs: Version 3.0 is the first such standard to go into effect, but will be followed by similar guidelines in other countries.

LCD-TVs adjust to changes
“The advent of these more restrictive government guidelines will have a significant impact on the development of LCD-TV technology and the television supply chain, impacting panel materials, LCD backlight unit designs and audio/video electronics,” Lawson said.

While many design changes will occur in television electronics and OEM-enabled features, including technologies like ambient light sensing to help facilitate intelligent backlight drive options, the largest gains will have to come from redesigns of the panel materials and backlight source electronics.

One very effective approach to address the need for on-mode power reduction will be the adoption of LED backlighting, especially the direct-lit type, which will can allow for up to 40 percent or more power savings in a typical 30-inch-or-larger LCD-TV.

CE market looks up, but low prices prevent true recovery

EL SEGUNDO, USA: Although the global consumer electronics market returned to sequential revenue growth in the second quarter, the industry this year will not achieve an annual expansion that would signal a true recovery, according to iSuppli Corp.

Global consumer-electronics equipment revenue rose to $71.1 billion in the second quarter, up 4.2 percent from $68.3 billion in the first quarter, based on a preliminary estimate from iSuppli.

This represents a major improvement from the first quarter, when revenue fell by 25.8 percent compared to the fourth quarter of 2008. While consumer-electronics revenue typically declines on a sequential basis in the first quarter following the fourth-quarter holiday selling season, this represented a particularly sharp decline.

The figure presents iSuppli’s forecast of global quarterly consumer electronics equipment revenue.

iSuppli" Worldwide Consumer Electronics Equipment OEM Revenue Forecast (Revenue in Millions of US Dollars)Source: iSuppli, July 2009

“Following the dismal first quarter, conditions are starting to improve in the consumer electronics business,” said Sheri Greenspan, senior analyst, consumer electronics, for iSuppli. “Revenue will continue increasing on a sequential basis in the third and fourth quarters, rising by 12.5 percent and 10.2 percent. While this growth is encouraging, 2009 will still be a down year for the industry.”

iSuppli predicts global consumer electronics equipment revenue will decline to $307.6 billion in 2009, down 8.2 percent from $335.2 billion in 2008, due to the impact of the worldwide economic downturn as well as sharply declining prices for key products.

These factors caused revenue to decline by 10 percent in the first quarter compared to the same period in 2008 and by 11.3 percent in the second quarter. Revenue will decline by 8 percent and 4.2 percent in the third and fourth quarters, respectively, on an annual basis.

Pricing’s double-edged sword
“With the recession having eaten into consumers’ disposable incomes, the consumer electronics industry has responded by cutting prices on popular products,” Greenspan said. “In diverse areas -- from digital still cameras, to video game consoles to LCD-TVs, manufacturers are offering price cuts to help move product.”

To a degree, this appears to be working, with aggregate consumer electronics product unit shipments set to rise sequentially by 5 percent, 16.1 percent and 14.1 percent in the second, third and fourth quarters.

However, following a 29.9 percent plunge in the first quarter, these sequential increases won’t be enough to prevent a 4.8 percent decline for all of 2009.

Although all 19 consumer electronics product segments tracked by iSuppli experienced a sequential decline in unit shipments in the seasonally weak first quarter, the second quarter saw a rebound, with most products returning to growth.

The only products to see a decline in unit shipments in the second quarter were handheld video games, video game consoles, camcorders and the moribund segment of rear-projection televisions.

In the third quarter, the only major segments set to experience sequential unit shipment declines will be digital set-top boxes and rear-projection TVs.

As the economy continues to recover, overall consumer electronics product revenue in 2010 will rise 2 percent to reach $313.7 billion, iSuppli predicts.

Glass shortage won’t derail Black Friday LCD TV deals

EL SEGUNDO, USA: Although pricing for LCD panels used in televisions now is rising due an acute shortage of glass, the shortfall is expected to be resolved in time for the all-important holiday buying season, allowing LCD-TV brands to offer their customary Black Friday deals, according to iSuppli Corp.

Amid an extreme oversupply situation in the fourth quarter of 2008, suppliers of glass for the kinds of large-sized LCD panels used in televisions started cutting capacity to less than 50 percent of full utilization at the end of 2008, according to Sweta Dash, senior director, LCD research, for iSuppli. Some glass makers even shut down some of their glass-producing tanks.

Because of this, panel suppliers now are unable to increase their LCD panel production capacity despite strong television demand from China and other regions. Global prices for large-sized LCD panels are expected to rise for a fifth consecutive month in June.

However, this situation is not expected to last, with prices for nearly all sizes of LCD-TV panels peaking in September and commencing a decline that will persist through the remainder of 2009 and into 2010.

This will help pave the way for the customary round of price reductions and Black Friday deals that historically have driven LCD-TV sales during the holiday selling season.

“If the LCD-TV brands hope to come anywhere near their sales targets for 2009, they will have to offer aggressive pricing deals during Black Friday and the following weeks,” said Riddhi Patel, principal analyst, television, for iSuppli. “If the deals don't materialize, sales this year will fall well short of predictions.”

Pricing for 32-inch 720p (progressive) scan LCD-TVs are expected to decline to $480 by November, with Black Friday specials possibly as low as $299. This is down from an average of $634 in June.

For 42-inch Full High-Definition (HD) or 1080p sets, pricing in November will fall to $628, down from $856 in June. Black Friday specials could be as low as $499.

Fig. 1 presents the pricing trends for popular sizes of LCD-TVs.Source: iSuppli, June 2009

Priceless pricing
While LCD-TV buyers have increased their focus on factors like picture quality, pricing remains a critical element in influencing purchasing decisions.

The phenomenon has been apparent this month, when LCD-TV sales are softening due to the cessation of pricing deals offered in April and May.

“Once the price deals went away, demand went away,” Patel said.

Pricing is the key factor driving consumers to recommend an LCD-TV model or brand to their friends and family members, according to iSuppli’s US TV Consumer Preference Analysis Service, which uses surveys to determine American consumer attitudes.

Beyond reduced panel costs, television brands also are set to reduce prices by utilizing less expensive sales channels.

“Consumers are becoming more comfortable with buying LCDs from Internet retailers and mass merchandisers, and they have become more concerned about paying too much for a television set,” Patel observed. “These outlets offer TVs at lower prices than traditional electronics specialty stores.”

With the essential Black Friday deals expected to make their annual appearance, iSuppli recently boosted its forecast of 2009 LCD-TV sales to 123 million units, up from 110 million before.

iSuppli Fig. 2: Global LCD-TV Sales Forecast (Millions of Units)Source: iSuppli, June 2009

Pain in the glass
In the meantime, the LCD panel market will continue to struggle with the glass shortage issue.

Unlike some raw materials, whose production can be ramped up quickly to meet changes in the level of demand, it takes time for glass makers to restore manufacturing to previous levels.

Depending on the level of deactivation of a glass furnace, it may take from one to six months to restore it to full production. Because of this, iSuppli expects the glass shortage won’t be resolved until September, by which time panel suppliers will be able to increase capacity and expand supply.

Because of these challenges, glass makers traditionally have been very judicious in their capacity and utilization—which makes the oversupply situation seen this year as even more of rarity in the LCD glass business.

Fortunately, the process of relighting furnaces has begun, paving the way for a strong year in the LCD-TV business. iSuppli predicts global LCD-TV sales will rise 23.5 percent in 2009 compared to 2008.

DisplaySearch revises worldwide TV forecasts

AUSTIN, USA: Better than expected results in Q1’09 for developed markets, especially for LCD TVs, together with increased stimulus spending by governments, particularly in China, have improved the outlook for TV demand in 2009.

Although total TV shipments are still projected to decline slightly to near 200M units worldwide, LCD TV is still poised for unit growth. DisplaySearch has raised the forecast for 2009 worldwide LCD TV sales from 120 million to 127 million units, as LCD takes share from CRT at a faster pace and the global TV market hurries along in the transition to flat panel technologies.

Despite this, LCD TV revenues are still projected to decline about 6 percent in 2009 due to price erosion and the strong shift in volume to discount retail channels, such as Walmart in the US. This is a much shallower decline than previously forecast due to faster growth of advanced technologies like 120/240 Hz and LED backlight models.

Several key findings from the DisplaySearch Q2’09 Quarterly Advanced Global TV Shipment and Forecast Report have been revised:

LCD TVs
Developed markets are starting 2009 with strong growth and emerging markets are transitioning from CRT to LCD faster than expected. DisplaySearch’s 2009 LCD TV unit forecast is increased from 120 million units to 127 million units, a 21 percent growth over 2008 and a 63 percent share of global TV shipments.

The 2009 revenue outlook was increased from $66 billion to $76 billion, primarily based on rising LCD panel costs since April that will drive slower ASP erosion in the second half of 2009.

“This is good news for global LCD TV revenues overall, but could have a negative impact on demand in developed markets, like North America where consumers are more sensitive to sale promotions and prices” noted Paul Gagnon, Director of North America TV Research. “Still, emerging markets offer tremendous growth opportunity, even at current price levels, and the slower ASP declines shouldn’t have a strong impact on rising demand.”

The 2009 LCD TV forecast for China was increased from 18.8 million units to 23.6 million units as the Chinese government fortified their rural home appliance purchase subsidy program and introduced additional incentives to consumers trading up from CRT to LCD in urban areas.

After the disastrous impact of the recession on global TV demand in Q4’08, DisplaySearch reduced its forecasts to account for uncertainty in the future economic outlook, as shown in Fig. 1 below. The revised forecast reflects the signs of life returning to the TV market.Source: Quarterly Advanced Global TV Shipment and Forecast Report

DisplaySearch is also now tracking shipments of 120 Hz and 240 Hz frame rate LCD TVs in 2009.

According to Vice President of TV Market Research Hisakazu Torii, “The shift to higher frame rates is critical to LCD TV manufacturers for increasing both performance and profitability, especially considering the rapid pace of commoditization in the category.”

"The 120 Hz frame rate models will account for 29 percent of LCD TV revenues worldwide in 2009, while 240 Hz will grab about 5 percent of revenues. By 2013, 120 Hz will account for 31 percent of LCD TV revenues, while 240 Hz accounts for more than 20 percent."Source: Quarterly Advanced Global TV Shipment and Forecast Report

Plasma TVs
Plasma (PDP) TV is expected to fall about 2 percent Y/Y to 14.1 million in 2009 after strong 28 percent growth in 2008. This outlook is down slightly from DisplaySearch’s previous forecast as a result of increased consumer preference overall for sub-40” screen sizes amid heightened price sensitivity during the recession.

The 1080p penetration continues to rise, accounting for 32 percent of plasma TV shipments in 2009, but quickly accelerating to more than 50 percent in 2010 and 80 percent by 2013.

DisplaySearch’s total global TV forecast is 200.4 million units in 2009, down 3 percent Y/Y, the first decline in total shipments in recent memory as the global recession and rising unemployment continue to take a toll on demand.

However, the slowdown will be temporary as the worldwide economy emerges from recession and new markets enter the initial stages of the flat panel and digital TV transition.

European TV market heats up despite economic crisis

EL SEGUNDO, USA: With the European Union’s economy showing signs of recovery, television sales in the region are expected to rise in 2009 as consumers continue to snap up LCD-TVs, according to iSuppli Corp.

“Television sales in Europe will rise to 51.97 million units in 2009, up 3.4 percent from 50.2 million in 2008,” said Riddhi Patel, principal analyst for television systems at iSuppli. “LCD-TVs, which will account for 79 percent of the market year, will see their sales rise by a robust 17.5 percent in 2009 to reach 41.1 million units, up from 35 million in 2008.”

The figure presents iSuppli’s forecast of the European television market by display technology.

iSuppli Figure: European TV Market Forecast by Technology, 2008-2013 (Thousands of Units)Source: iSuppli Corp., June 2009

Economic recovery
According to the European Commission’s recent reports, indications of an economic recovery from what were record lows have been confirmed by improved business and consumer confidence in the 16 Euro-using-countries in May, the second month in row.

According to the European Commission, the index of business and consumer confidence in the Euro zone increased to 69.3 in May, up from 67.2 in April—the highest level since November 2008. Consumer spending also has increased in all major European countries, including France and Germany.

Overall, the region’s economy has stabilized, but concerns remain about the labor market and rising unemployment rates, which could counter the impact of lower inflation rates on household spending. Nevertheless, despite mixed signals, there are more positive signs of an economic recovery taking place in Europe than there are negative indicators.

LCD-TV market shows strength
The continued growth in Europe’s LCD-TV market also can be attributed to factors including:

• Increased demand in Eastern Europe for both first-time and replacement buyers.
• Declining prices, which have made these televisions attractive to consumers across various income levels.
• The introduction of new features, such as 100Hz/200Hz refresh rates, and now, LED backlights.
• Increased domestic production, which has led to better management of inventories.

CRT and plasma, which continue to lose ground in Europe, will suffer a 40.2 percent decline in sales compounded annually between 2008 and 2013. The technology is retreating due to a lack of consumer interest, falling brand and retail support and the diminishing price differential between LCD- and CRT-TVs of similar sizes and features.

During the same time frame, plasma TV sales will decline at 16.4 percent compounded rate while LCD-TVs will grow at a 11.5 percent Compound Annual Growth Rate (CAGR) to reach 60.3 million units.

LED-backlit LCD-TVs to grow to 39 percent by 2013

EL SEGUNDO, USA: As prices of LCD panels that use LED backlights fall in the coming years, their use in televisions is set to explode, iSuppli Corp. predicts.

Global shipments of LCD-TV panels with LED backlighting will rise to 90 million units in 2013, up from just 438,000 LED TV panels in 2008. Penetration of LED-backlight technology in LCD-TV panels will increase to 39 percent in 2013, up from 3 percent in 2009.

“The price gap between LEDs and CCFLs traditionally used for LCD backlighting has narrowed due to the higher yield rate of LEDs, as well as the oversupply that resulted in a drastic price reduction for LEDs in the second half of 2008,” said Sweta Dash, senior director, LCD research at iSuppli. “And with the advent of green technology, power savings and thinner form factors, more branded manufacturers are looking at LED-backlit LCD-TVs in 2009. These factors are spurring brand-name television manufacturers to adopt LED backlighting.”

The figure presents iSuppli’s forecast of global shipments of LCD-TV panels equipped with LED backlights for the period of 2008 through 2013.

iSuppli Figure: Global Forecast for Light Emitting Diode (LED) Backlights in Large TFT-LCD TV Panels, 2008-2013 (Thousands of Units)Source: iSuppli Corp., June 2009

LEDs emerging at last in TVs
Branded television manufacturers have offered LED-based LCD-TVs for some years now without much success. Mostly, this was due to a higher price and larger cost differential between LED and CCFL products. However, there is a renewed interest for LED backlight-based LCD TVs with the use of white LEDs.

Instead of focusing only on color gamut, picture quality and high-end RGB solutions, manufacturers are starting to concentrate more on thinner form factors and lower power consumption with the use of side-mounted white LED backlight solutions.

The lower price differential between CCFL and white LED solutions, combined with the lure of thin TV, has led to an increasing adoption rate of LED-based TVs. Branded manufacturers such as Samsung also are focusing on shifting a significant portion of their LCD-TV offerings to LED backlights.

Green light
For LCD-TVs, panel suppliers are offering products with 120Hz frame rates with edge-lit LED backlights to achieve thinner form factors, lower power consumption and mercury-free “green” attributes. In some cases, power savings with the use of LED backlights can be as high as 30 percent to 50 percent. Thickness and weight savings also can be as high as 30 percent to 50 percent.

Owing much to the “green” initiative from many countries in the world, lower power requirements for TVs are expected in the next few years, and the current power-consumption level of many TVs may end up being below these requirements. This will lead to a faster shift to lower-power-consumption products.

In a recent consumer survey presented in iSuppli’s April edition of its US TV Consumer Preference Analysis, more than 50 percent of U.S. consumers take into account the “green initiative” factor when purchasing TVs.

Supply in chains
However, because LEDs also are used for general lighting purposes, there recently has been some concern about LED chip supply. Furthermore, the LED backlight supply chain is still evolving with varieties of solutions and many different suppliers that need to be involved.

Already, panel suppliers are either entering joint-venture partnerships or developing their own in-house LED solutions to streamline the value-chain process, reduce costs and gain better control over the supply.

New innovations and higher performance will help LEDs gain faster adoption in TVs in the years to come. The price difference for LED vs. CCFL TV systems may range from $300 to $700, depending on the size and type of LED used. The gap, however, is expected to narrow in the future, and many branded TV manufacturers are planning new LED-based TV models with very aggressive prices in the second half of 2009.

Given the current high price gap between CCFL- and LED-based LCD-TV sets and panels, panel suppliers are hoping to reduce the price difference —- to less than $100 between the 40/42-inch CCFL and LED-based panels, and to below $150 for 46-inch panels. This compares to a difference of more than $150 for 40/42-inch sizes at present.

With increasing importance being placed on lower power consumption and green initiatives, televisions are expected to have more stringent requirements in the future. LED backlights will enable next-generation TVs to fulfill those requirements.

Prices for premium- and value-brand LCD TVs converge

EL SEGUNDO, USA: The price differential between LCD TVs sold by premium brands and value brands is narrowing as marquee nameplates vie to capture a wider consumer base by offering less expensive models, according to iSuppli Corp.

The lowest price in April for a 40-inch premium-branded LCD TV was $900. The lowest price for a 40-inch LCD-TV offered by a value brand was $615. Comparable 42-inch premium and value brand sets were priced at $955 and $798 respectively.

This narrow price gap makes the premium brands very competitive with value alternatives.

“The rising popularity and growing consumer comfort with value brands like Vizio is prompting premium competitors to offer cheaper LCD TV models in the 40-inch and larger sizes,” said Riddhi Patel, principal analyst, television, for iSuppli.

However, while price is an important consideration for consumers when selecting an LCD-TV to buy, it’s not the most important factor.

“Consumers’ No.-1 consideration when buying a new LCD-TV isn’t price, but picture quality,” Patel said. “Price is secondary. So even if premium and value brands reach price parity, the dominant factor will still be which television actually looks better to the naked eye, rather than the price on the tag. Obviously, in a perfect world, that would even the playing field. But when it comes to consumer electronics, it is anything but even. Brand recognition is an important asset for any company. Who would choose a nameless Taiwanese or Chinese brand over a Sony Bravia or a Samsung?”

However, there are exceptions to this rule. For example, US-based Vizio has achieved remarkable success as a premium alternative brand built from the ground up.

According to iSuppli’s Television Market Tracker Service, Vizio surged to the top spot in the US and Canadian LCD-TV market in the first quarter.

Vizio’s lowest ASP for a 42-inch Cold-Cathode Fluorescent Lamp (CCFL) backlit, 60Hz refresh rate, full High-Definition (HD) LCD-TV was $850. In comparison, Samsung and Sony 40-inch LCD-TVs with the same configurations carried ASPs of $1,000 and $1,090, respectively.

The figure presents global average price trends for 40/42-inch LCD TVs, with full high definition resolution, 60Hz refresh rates Cold-Cathode Fluorescent Lamp (CCFL) backlighting.Source: iSuppli, June 2009

A premium on premium features
While the premium brands now are offering less-expensive LCD TVs, they continue to produce higher-end models with up-to-date features.

Average LCD TV prices in April in the 40-inch and larger screen sizes increased by 3 percent on a monthly basis, despite drops for the older models, as premium brands continued to introduce more full-featured sets in the larger sizes during the month.

Samsung in April introduced more LED backlit models, including the 8000 series. Prices on these high-end models in the 40- to 49-inch segment range from $2,500 to $4,000, varying by brand and size.

“The premium brands’ dual-pronged strategy of offering high- and low-end models can help them to maintain market share amid the rise of Vizio,” Patel said.

Beyond LED backlights, LCD TVs capable of viewing Internet videos and web content also are showing up as a new feature for televisions, mainly on the premium brands.

iSuppli expects average LCD TV selling prices to decline slightly in the coming months, as brands and retailers roll out with promotions for the upcoming “Dads and Grads” season. However, average list prices likely will remain flat as more new models are added to the product mix. In general, current inventory levels at the retailers are at a healthy five to six weeks.

Rising notebook PC and TV sales send large-sized LCD panel prices up

EL SEGUNDO, USA: Average pricing for large-sized Thin Film Transistor (TFT) LCD panels is increasing at a stronger-than-expected rate in May due to a rebound in notebook PC demand and surprisingly robust television sales, according to iSuppli Corp.

“While desktop PC monitor panel prices experienced a recovery in February, notebook panel prices continued to decrease throughout the first quarter due to weak demand,” said Sweta Dash, senior director for LCD research at iSuppli.

“However, by May, virtually all large-sized panels -- i.e., those with a diagonal dimension of 10-inches or more—experienced price increases compared to April, including notebook PCs and LCD TVs less than or equal to 37-inches in size. Even the 40/42-inch TV panel prices started to stabilize after months of price reductions.”

Pricing in May is set to increase by $3 to $7 for monitor panels, by $2 to $6 for notebook panels, and by $5 to $8 for 26- and 32-inch television panels.

This trend is expected to continue in June and July with the prices of most panels tracked by iSuppli continuing to increase. Prices will remain on the rise in the third quarter during the holiday build season.

In anticipation of these developments, suppliers have reduced their shipments by drastically cutting utilization rates of their fabs, making panel supply tight and helping to drive up prices as a result.

“China continues to be the key growth region, thanks to the government’s rural subsidy program and the upcoming Golden Week holiday,” Dash said. “Demand from the US market also is intact.”

Among panel suppliers, inventory is reportedly low at about two weeks—the same as it is for panel buyers. Many branded vendors and system integrators are suffering panel shortages for some sizes, although they are seeing improvement from the April level.

With most TV, monitor and notebook panel pricing hovering at the cash-cost level, panel suppliers are trying hard to increase prices in order to make a profit. As a result, pricing for the 26-, 32- and 37-inch TV panels as well as monitor and notebooks panels showed higher-than-expected increases in May.

The figure presents iSuppli’s price estimate for a panel indicative of market trends—the 32-inch WXGA TV LCD panel market for the period of the first quarter of 2007 through the fourth quarter of 2009.Source: iSuppli

Average pricing for these panels is set to rise to $174 in the second quarter, up from $153 in the first. Pricing will increase again to reach $185 in the third quarter.

As iSuppli reported this week, even amid the current economic downturn, consumers are continuing to purchase flat-panel televisions. However, with disposable incomes having been squeezed, U.S. consumers are gravitating to smaller-sized sets. Because of this, sets sized 32-inches and smaller went into short supply starting in April, contributing to a rise in panel prices.

In uncertain times, US consumers turn to TV!

EL SEGUNDO, USA: Confounding the prediction of many pundits of a major decline in flat-panel television sales in early 2009, the US and Canadian market continued to expand in the first quarter, as consumers chose to invest in home entertainment, according to iSuppli Corp.

Shipments of flat-panel televisions, i.e., LCD and plasma sets, in the United States and Canada amounted to 7.8 million units in the first quarter of 2009, up 17.3 percent from 6.6 million during the same period in 2008. Consumers managed to increase their television purchases by gravitating toward less expensive models, low-priced retailers and value brands, according to iSuppli.

“In the post-9/11 era, a new phrase entered the lexicon: ‘cocooning,’ a trend among fear-struck citizens to avoid travel and remain in the safety of their homes,” said Joe Abelson, vice president, displays, for iSuppli. “Amid the current economic downturn, a new wave of cocooning has hit, with recession-wary US consumers eschewing travel, staying home and watching their televisions. However, they still are finding enough money to buy new flat-panel sets that offer superior pictures and larger sizes.”

Low-priced realignment
This trend is impacting the television market on many different levels.

“There has been a major shift in flat-panel television purchasing price points,” observed Tina Tseng, analyst, television, for iSuppli. “In the first quarter of 2009, 68.9 percent of US television purchases were of sets priced less than $1,000, according to a survey conducted by iSuppli’s US Television Consumer Preference Analysis service. This is up from 62.8 percent in the second quarter of 2008.”

US purchases of flat-panel televisions priced in the $600 to $999 range rose the fastest among all price bands, increasing by 3.6 percent in the first quarter compared to the second quarter of 2008. In comparison, purchases of flat-panel sets priced at less than or equal to $599 increased by 2.6 percent.

Meanwhile, US purchases of sets priced from $1,000 to $1,499, from $1,500 to $1,999 and at more than $2,000 declined by 1.7 percent, 1.3 percent and 3.1 percent, respectively.

For many US consumers, buying a lower-priced flat-panel set means going for a smaller set. Because of this, sets sized 32-inches and smaller went into short supply starting in April.

However, larger televisions—40 inches and bigger—are coming down in price as premium brands slash prices to match those of their value competitors.

Fig. 1 presents quarterly percentages for flat-panel TV purchases by price band in the United States.Source: iSuppli

Wal-Mart windfall
As US consumers flock to lower-priced flat-panel televisions, they also are embracing lower-cost retailers, particularly Wal-Mart.

No.-2 flat-panel television retailer Wal-Mart in the first quarter of 2009 accounted for 22.3 percent of all US flat-panel purchases, up from 13.8 percent in the first quarter of 2008. Purchases at No.-1 Best Buy remained largely flat during the same period on a percentage market-share basis.

This put Wal-Mart just one tenth of a percentage point behind Best Buy in the first quarter of 2009, closing the gap dramatically from 9 points in the first quarter of 2008.

Fig. 2 presents the percent of total US flat-panel television purchases made at the nation’s Top-4 TV retailers.Source: iSuppli

Hand in hand with Wal-Mart’s rise is the ascension of the retailer’s featured television brand: Vizio.

Vizio’s first-quarter 2009 flat-panel television shipments in the United States and Canada rose to 1.4 million units, up from 829,000 in the first quarter of 2008. While Vizio took the No.-1 position in US and Canadian LCD-TV sales in the first quarter, when plasma is added in to create the total flat-panel segment, Vizio came in a close second behind Samsung.

Shin-Etsu develops new generation of silicone encapsulating material

TOKYO, JAPAN: Shin-Etsu Chemical Co., Ltd. has developed and begun sales of its “ASP Series” of silicone encapsulating material for HBLEDs. The company is beginning sample shipments, mainly for backlighting applications in LCD TVs.

This newly developed silicone product will stably retain its properties even when exposed to high temperatures. The new material greatly reduces the level of gas permeability, which can lead to the degradation of light intensity. It succeeds in reducing the level to 1/100th of the conventional methyl-group material and to 1/10th of the phenyl-group material. As a result, the reliability of HBLEDs has been dramatically improved.

Since this new product is superior in photo-thermal stability and transparency and has a high refractive index of 1.57, it is an attractive encapsulating material for HBLEDs. There are two types of products in this series formulated based on different hardness properties: “ASP-1010 A/B” has a hardness level of (Shore D) 55 and “ASP-1020 A/B”, has a hardness level of (Durometer A) 65.

In addition to the new silicone encapsulating material product series being announced in this press release, Shin-Etsu Chemical has a line-up of other diverse silicone encapsulating materials for HBLED applications.

Representative products in the “SCR Series” are increasingly being adopted for backlighting applications in mobile phones and notebook PCs, and products in the “KER Series,” which are superior in long-term reliability, are also being increasingly adopted, mainly for applications in general-purpose lighting.

In addition to these silicone encapsulating materials, Shin-Etsu Chemical has developed various other silicone materials for HBLEDs including die bond materials and lens materials. The company also offers peripheral materials such as heat-radiating materials and moisture-proof insulating materials.

In the future, Shin-Etsu Chemical will continue to pursue the development of cutting-edge technologies and will carry out its product development efforts with the goal of meeting the needs of the rapidly developing, more sophisticated market for HBLEDs.

Silicones are highly functional materials that have both organic and inorganic characteristics. They are used as products that can provide high-added value in a wide range of industrial fields such as the electrical, electronics, automotive, construction, cosmetics, and chemical industries.

Global TV revenues decline 12pc Y/Y in Q1’09

AUSTIN, USA: With a lingering global recession continuing to place pressure on discretionary spending, global TV shipments declined 6 percent Y/Y in Q1’09 to 43.3M units according to the latest Quarterly Global TV Shipment and Forecast Report from DisplaySearch. This was a decline of 25 percent from Q4’08 on seasonal trends.

Revenues fell even more, down 12 percent Y/Y to $22.1 billion with ASPs falling 6 percent Y/Y as both retailers and brands sought to keep consumers shopping. The resulting shipments were very close to projections, but the mix was weighted more heavily towards LCD TVs than expected on strong demand in China as well as North America.

Globally, flat panel TV shares grew from 66 percent in Q4’08 to 68 percent in Q1’09 as LCD TV prices fell even more in Q1’09 on an annual basis than they did during the Q4’08 holiday season, an indication of the pressure to maintain consumer demand.

LCD TVs were the only technology to gain share during the quarter, rising from 58 percent to 62 percent, as Y/Y shipments grew 27 percent to 26.7M units, but revenues posted the first ever Y/Y decline on a worldwide basis, down 1 percent Y/Y, highlighting the pressure on prices.

Plasma TV unit shipments increased 1 percent Y/Y by comparison to 2.8M with revenues falling by 26 percent Y/Y, representing 6 percent of unit shipments and 11 percent of global TV revenues.

China remained the #1 region for TV shipments, increasing unit share from 19.1 percent to 21.3 percent, with strong growth in LCD TV shipments, posting the only sequential increase in LCD TV unit volume from Q4’08 to Q1’09 of any region, as the rural subsidy program gained momentum and helped to partially offset a sharp decline in demand for CRT TVs. North America was the dominant region for TV revenues, accounting for more than 27 percent of global dollars due to a greater mix of large size LCD and plasma TVs than other regions.

Given the pressure on consumer spending, it’s not surprising that demand remained strong for modest screen sizes, where pricing was more attractive. 32” was still the most popular screen size, accounting for almost 38% of unit shipments, but the share of total TV shipments above 40” declined about half a percent from record levels in Q4’08. The unit share of higher resolution 1080p models increased by more than a point to a record 21.7%.

A review of global TV shipment performance by technology can be seen in Table 1.

Table 1: Q1‘09 Worldwide TV Shipments by Technology (000s)Source: DisplaySearch Quarterly Global TV Shipment and Forecast Report

On a brand basis, Samsung remained the global brand share leader in revenues for the thirteenth straight quarter, holding their revenue share around 22 percent, and also leading in global TV unit share. LGE overtook Sony for the #2 share position in global TV revenues, rising almost 2 points to 13.3 percent and posting the only Y/Y revenue growth among the top five brands with a 14 percent Y/Y growth in unit volume.

Sony fell to #3 on a revenue basis as a result, with Sharp and Panasonic rounding out the top five. It’s interesting to note that in LCD TV on a revenue basis, Philips fell out of the top five for the first time, replaced by Toshiba who was #2 in Japan and #5 in North America and Western Europe.

A complete review of the top five brands can be seen in Table 2.

Table 2: Q1‘09 Worldwide TV Brand Rankings by Revenue ShareSource: DisplaySearch Quarterly Global TV Shipment and Forecast Report

Vizio No. 1 in North American LCD-TV shipments in Q1

EL SEGUNDO: US television maker Vizio Inc. surged into the leading position in the North American LCD-TV market in the first quarter, as dwindling disposable incomes sent consumers flocking to buy the company’s low-cost sets.

Vizio’s share of North American LCD-TV unit shipments rose to 21.6 percent in the first quarter, up 7.8 percentage points from 13.8 percent in the fourth quarter of 2008, according to iSuppli Corp. The company surpassed Samsung to take the No-1 position in the North American region.

“Due to its aggressive pricing, Vizio for some time has maintained its position as North America’s top-selling LCD-TV value brand,” said Riddhi Patel, principal analyst, television systems, for iSuppli. “However, since the onset of the economic downturn, Vizio’s share has risen dramatically. With budgets becoming increasingly tight, consumers are finding the company’s inexpensive sets more alluring.”

In the first quarter, Vizio’s lowest Average Selling Price (ASP) for a 42-inch Cold-Cathode Fluorescent (CCFL) backlit, 60Hz refresh rate, full High-Definition (HD) LCD-TV was $850. In comparison, Samsung and Sony 40-inch LCD-TVs with the same configurations carried ASPs of $1,000 and $1,090 respectively.

When comparing 120Hz models at the 40/42-inch size, the price differential between Vizio and Samsung and Sony was $400, with the Vizio set priced at about $1,000.

After first taking the lead in the North American market in the second quarter of 2007, Vizio’s share of LCD-TV shipments dwindled to 8.7 percent in the second quarter of 2008. However, by the first quarter of 2009, the company’s market share had risen by two and half times the level of the low in the second quarter of 2008.

While Vizio has maintained its low pricing, it has managed to add newer features to its LCD-TVs, such as 120Hz, making them more competitive with those from premium brands like Samsung and Sony.

Another factor contributing to Vizio’s success is the company’s use of high-powered retail channels to sell its sets, most notably Wal-Mart.

Are LCD-TVs must-have items?
North American LCD-TV shipments in the first quarter amounted 6.3 million units. While this was down 23.2 percent from 8.1 million units in the fourth quarter, the decline follows the normal seasonal pattern of shipments peaking in the fourth-quarter holiday season and falling to the low point of the year in the first quarter.

Compared to a year earlier, in the first quarter of 2008, regional shipments in the first quarter of 2009 were up by 10.5 percent, indicating the LCD-TV market remains strong despite the economic downturn that has caused sales of most other consumer-electronics products to decline.

Rather than stopping their purchases of LCD-TVs, consumers are focusing on lower-priced sets.

“With LCD-TV sellers in the first quarter maintaining their promotions from the holiday season, and with prices declining, television sales managed to grow compared to the same period a year earlier,” Patel said.

Insignificant others
Vizio posted the largest increase in market share and shipments among the Top-5 North American LCD-TV brands.

The combined market share of the smaller players, accounted in the “others” category, saw their portion of shipments plunge to 21.9 percent in the first quarter, a significant drop from 29.4 percent in the fourth quarter of 2008.

“Smaller brands saw their share of shipments decline so rapidly because of increased competition from the premium brands in terms of pricing and availability of 32-inch and smaller sizes,” Patel said. “Premium brands priced some of their product lines very competitively with their value alternatives, compelling consumers to go for names that they recognize.”

Source: iSuppli

Large-area TFT LCD shipments grew 29 percent M/M in March

AUSTIN, USA: March 2009 shipments of large-area TFT LCD panels reached 37.9 million units, showing strong M/M growth of 29 percent, according to the most recent DisplaySearch Monthly TFT LCD Shipment Database.

In addition, large-area TFT LCD revenues reached $3.9 billion, up 31 percent M/M. While shipments were down only 5 percent Y/Y, revenues were 47 percent lower than March 2008, indicating the magnitude of price declines over the past year.

All three major applications—notebook PC, monitor and TV—showed over 20 percent M/M growth, and total shipments were the highest in six months. February shipment results indicate that the TFT LCD industry had reached the bottom of the cycle, and March’s results show some recovery.

DisplaySearch’s research found that notebook panels had the highest M/M growth at 38 percent, followed by LCD TV at 30 percent and LCD monitor at 24 percent. However, monitor panel shipments are still lower than the same month last year. Notebook panel shipments were flat and TV panels were 14 percent higher than March 2008. Table 1 shows monthly shipments by application.

Table 1: Monthly Large-Area TFT LCD Panel Shipments by Application (Millions)Source: DisplaySearch April 2009 Monthly TFT LCD Shipment Database

In addition to large-area TFT LCDs, the Monthly TFT LCD Shipment Database also tracks 5.0” to 10.2” mini-note (netbook) panel shipments. Mini-note PC panel shipments were 2.7 million in March 2009, up 79 percent M/M; HannStar continued to be the leader in mini-note panel shipments in March. The Premium Version of the Monthly TFT LCD Shipment Database includes shipment data by suppliers for each application and screen size.

For the notebook PC application, shipments of 16:9 panels reached 2.8 million, a 24 percent share of the 11.6 million notebook panels shipped, up from 17 percent in February. In monitors, 16:9 panels reached 4.3 million units, a 28 percent share of the 15.4 million monitor panels shipped, up from 26 percent in February. Meanwhile, 32” TV panel shipments reached 4 million units in March, which is the highest monthly volume ever.

According to David Hsieh, Vice President of DisplaySearch: “March results are encouraging for panel makers as they reflect a good recovery in demand.” Looking forward, Hsieh added, “Considering the current end-market demand and the low panel inventories, we expect that shipments will continue to grow in Q2’09, and we forecast that panel makers will reach 80 percent capacity utilization in Q2’09.”

He concluded: “We previously predicted that March would show double-digit growth over February, as panel makers have been increasing capacity utilization, and these results bear out our forecast. However, the key challenge for panel makers is to evaluate the supply/demand balance, which will be determined by the amount of production increase and by whether the growth in demand is sustained in Q2’09.”

For information on the DisplaySearch Monthly TFT LCD Shipment Database, contact Carl Holec at info@displaysearch.com!

Source: DisplaySearch