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

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.

RVU Alliance to accelerate remote user interface technology development

EL SEGUNDO, USA: Broadcom, Cisco, DIRECTV and Samsung are forming an alliance to develop a specification for a full-featured “pixel accurate” Remote User Interface (RUI) that will form the core of the new RVU technology.

The RVU Alliance complements and benefits existing industry interoperability initiatives and underscores its founders’ commitment to the sharing of digital content in the connected home.

Highlights/Key facts:
* RVU Alliance’s pixel accurate RUI technology will provide an identical user experience on all RVU-based thin client CE devices throughout the connected home, including digital TVs (DTVs), digital media adapters (DMAs) and set-top boxes (STBs).
* Refinements to the user experience can be deployed in the home with a single update in the RVU-based media server appearing on all subscribing thin client CE devices.
* RVU technology is expected to accelerate the availability of service provider content throughout the connected home. A server-controlled, common user experience helps enable the rapid introduction of new features and applications that typically accompany commercial content.
* One important industry interoperability initiative is the Digital Living Network AllianceSM (DLNA®), of which RVU Alliance founders are promoting members.

The RVU Alliance is an Oregon-based non-profit mutual benefit corporation with membership participation at Founding Promoter, Promoter and Contributor levels. www.rvualliance.org

Competitors scramble for hot features as PMP/MP3 player market loses steam

SCOTTSDALE, USA: As the worldwide PMP/MP3 market matures, with shipment growth of only 5 percent in 2009, competitors are scrambling to add features such as touchscreens and Wi-Fi connectivity to re-ignite demand reports In-Stat.

Just a few years ago, the PMP/MP3 player market was among the strongest growth segments in the portable consumer electronic (CE) industry. Today, the market is stalled due to a perfect storm of weak consumer demand, a poor economic environment, a stalled replacement market, and competition from the iPhone and other audio/video-capable smartphones.

“Among the lone bright spots in the PMP market is Wi-Fi enabled PMPs,” says Stephanie Ethier, In-Stat analyst. “Unit shipments of Wi-Fi-enabled PMPs will grow more than four-fold by 2013 from the 14 million units shipped in 2008.”

Recent research by In-Stat found the following:

* Total worldwide shipments of PMP players will reach 225 million in 2009, with Asia Pacific representing the largest geographic market.
* The market is decidedly shifting to video-enabled devices. By 2013, only 15 percent of PMP players will be audio-only devices.
* Among the key PMP competitors are: Apple, Archos, Creative Technology, iRiver, ZVUE Corporation, Microsoft, SanDisk, Samsung, and Toshiba.
* The total semiconductor opportunity for PMP/MP3 player suppliers has peaked and will decline below $5 billion by 2013. NAND Flash and Video processors make up the majority of semiconductor revenue.
* Among the key PMP Semiconductor competitors are: Actions Semiconductor, NVIDIA, Texas Instruments, Toshiba Semiconductor, Freescale Semiconductor (SigmaTel).

Large-area TFT LCD shipments reach record levels in June

AUSTIN, USA: June 2009 shipments of large-area TFT LCD panels reached 46.7 million units, up 8 percent M/M and 24 percent Y/Y, according to the most recent DisplaySearch Monthly TFT LCD Shipment Database. This sets a new record for the highest monthly large-area TFT LCD shipments.

On a unit basis, LG Display was the leader with 24.5 percent market share, followed by Samsung with 24.1 percent and AUO with 16.6 percent. Large-area TFT LCD revenues reached $5.3 billion, up 14 percent M/M, but 17 percent lower than June 2008.

In terms of shipment volume, June’s shipment results indicate a continuation of the large-area TFT LCD industry’s recovery. DisplaySearch forecasts that shipments will increase again in July, but at a slower rate because the glass substrate shortage is limiting panel makers’ production. The panel supply situation will continue to tighten in July and August, which will result in higher revenues.

All three major applications—notebook PC, monitor and TV—showed M/M growth. DisplaySearch’s research found that LCD TV panels had the highest Y/Y growth at 57 percent, followed by notebook panels at 19 percent, and monitor panels at 12 percent (Table 1).

Also noteworthy, notebook PC and LCD TV panel shipments both reached monthly record highs, with 14.7 and 13.1 million units, respectively. The 18 million LCD monitor panels shipped is the most since May 2008.

Table 1: Monthly Large-Area TFT LCD Panel Shipments and Growth (Millions)Source: DisplaySearch June 2009 Monthly TFT LCD Shipment Database

In terms of area, large-area TFT LCD shipments reached 7.1 million square meters in June, up 7 percent M/M and 32 percent Y/Y, the largest amount yet. The growth in shipment area was mainly driven by TV panels. Samsung led in area shipments with a 27.2 percent market share, followed by LG Display at 24.9 percent, CMO at 16.5 percent, and AUO with 15.6 percent.

In addition to large-area TFT LCDs, the Monthly TFT LCD Shipment Database also tracks 5.0” to 11.6” mini-note (netbook) panel shipments. Mini-note panel shipments were 3.5 million in June, also an all-time high.

HannStar took back the lead from AUO with 956 thousand units, passing AUO’s 920 thousand. HannStar started shipping 11.0” mini-note panels.

The Premium Version of the Monthly TFT LCD Shipment Database includes shipment data by suppliers for each application and screen size. Penetration of 16:9 aspect ratio panels in LCD monitors reached 49 percent in June, a big leap from 42 percent in May.

The penetration of 16:9 in notebook PCs reached 41 percent, also a big leap from 36 percent in May.

According to David Hsieh, Vice President of DisplaySearch: “June results broke many monthly records, such as total large-area shipments, notebook PC and LCD TV panel shipments, shipment area, and mini-note shipments. This is representative of the strong recovery in end-market demand, which is not limited to TV, but also includes notebook PCs and desktop monitors.”

Hsieh added: “We expect the limited supply of glass substrates will limit the shipment growth in July, and given end-market demand, we expect that shortage conditions will continue. However, this will encourage OEMs and brands to aggressively build inventories for the holiday season. As panel customers build inventories in Q3’09 after shortages in July and August, we believe it will be very important to scrutiny the supply chain inventory in September.”

Samsung intros high-capacity 250GB 1.8” hard drives

SEOUL, SOUTH KOREA: Strengthening its line up of portable 1.8” hard drives for external storage markets, Samsung Electronics Co. Ltd announced its 250 Gigabyte (GB) 1.8 inch hard disk drive, the Spinpoint N3U, which incorporates a native USB controller on its PCB.

This optimized design results in a smaller foot print, less power consumption and optimized performance, which is ideal for portable external storage devices. The Spinpoint N3U stores up to 125 Gigabytes per platter for a total 250GB data storage capacity.

Most external hard drives require the addition of a bridge circuit board to convert the hard drive’s PATA interface into a USB interface. Samsung’s N3U drive, however, uses a native USB interface and as such does not require this bridge board.

“The new high-capacity 1.8” 250GB drive enhances Samsung’s product offerings and is ideal for consumers who require a small form factor, high capacity data storage,” said Choel-Hee Lee, vice president of marketing Storage System Division, Samsung Electronics. “It is easy to carry around and it is designed to withstand a free fall drop of up to 50 centimeters and be resistant to a maximum shock incident of up to 1500G.”

As a native USB interface device, the Spinpoint N3U eliminates possible points of failure due to loose cable connections and optimizes performance by eliminating the interrupt service time for the bridge board to convert PATA to USB signals. And the N3U 1.8” drive also consumes about 40 percent less power than a 2.5” hard drive of an equivalent capacity.

Samsung now ships industry leading areal density levels for all of its hard disk form factor products with up to 1.5 Terabyte for 3.5” drives, 500GB for 2.5” drives and 250GB for 1.8” drives.

The Spinpoint N3U comes in 120-, 160-, 200- and 250-GB capacities, the disk rotation speed is 3600rpm, and it supports a USB 2.0 interface. The drives are equipped with an 8MB cache memory. Initial shipments to OEMs are scheduled from mid-July with a MSRP at $199.00.

May large area TFT LCD shipments -- Samsung leads with 27.5pc

AUSTIN, USA: May 2009 shipments of large-area TFT LCD panels 43.3 million units, up 8 percent M/M and 6 percent Y/Y, according to the most recent DisplaySearch Monthly TFT LCD Shipment Database. The 43.3 million units also represent the highest on record for the past 12 months.

On a unit basis, LG Display was the leader with 25.2 percent market share, followed by Samsung with 24.6 percent, and AUO with 17.9 percent. Large area TFT LCD revenues reached $4.7 billion, showing 15 percent M/M growth, but 35 percent lower than May 2008, an indication of how far prices declined in Q4’08 and Q1’09.

In terms of shipment volume, May’s shipment results indicate a continuation of the large-area TFT LCD industry’s recovery. DisplaySearch forecasts that shipments will increase again in June, and that the panel supply situation will continue to tighten in June and July, which will result in higher revenues.

All three major applications — notebook PC, monitor and TV — showed M/M growth. DisplaySearch’s research found that LCD TV panels had the highest M/M growth at 14 percent, followed by notebook panels at 7 percent, and monitor panels at 5 percent. The Premium Version of the Monthly TFT LCD Shipment Database includes shipment data by suppliers for each application and screen size.

Table 1: Monthly Large-Area TFT LCD Panel Shipments and Growth (millions)Source: DisplaySearch May 2009 Monthly TFT LCD Shipment Database

Large-area TFT LCD shipments reached 6.6 million square meters in May, up 10 percent M/M and 12 percent Y/Y, and the highest level in more than a year. The growth in shipment area was mainly driven by TV panels. Samsung led in area shipments with a 27.5 percent market share, followed by LG Display at 25.6 percent, CMO at 16 percent, and AUO with 15.9 percent.

In addition to large-area TFT LCDs, the Monthly TFT LCD Shipment Database also tracks 5.0” to 11.6” mini-note PC (netbook) panel shipments. Mini-note panel shipments were 3.1 million in May, almost flat from April. AUO led in shipments, passing HannStar, which had been the leader in mini-note panel shipments since January.

Several panel makers have entered the mini-note market since May, including Innolux in Taiwan and InfoVision in China. At the same time, panel makers such as CMO, AUO, LG Display and Samsung have started to ship 11.6” panels for mini-note PCs.

According to David Hsieh, Vice President of DisplaySearch, “May results are encouraging for panel makers, as they reflect a healthy recovery in demand.” He added: “Considering the current end-market demand and the limited supply of glass substrates, as well as the low panel inventories, we expect that shortage conditions will continue. In June, both panel shipments and prices continue to increase, and we expect to see additional price increases in July.”

Top five makers to produce 89.2pc of global large-area TFT LCDs by area in 2009

AUSTIN, USA: Production of TFT LCD panels is continuously evolving, as different panels of different sizes and applications are made on the most appropriate generation fabs based on utilization and cost efficiency.

In unit terms, 34.3 percent of large-area (10”+) TFT LCD panels were made on Gen 7 lines in Q1’09, up from 32.5 percent in Q4’08, according to the latest DisplaySearch Quarterly Large-Area Production Strategy Report. DisplaySearch defines Gen 7 to include 1870 × 2200 mm and 1950 × 2250 mm (defined by some as Gen 7.5) substrate sizes.

In Q1’09, 2.3 percent of all panels were produced on Gen 4 and below, 24.4 percent on Gen 5, 4.4 percent on Gen 5.5, 23.9 percent on Gen 6, 34.3 percent on Gen 7, and 10.8 percent on Gen 8, in unit terms (see Table 1).

TFT LCD makers are shifting more production to larger fabs. In Q1’10, the share of large-area TFT LCD panels produced on Gen 8 lines (which DisplaySearch defines to include 2160 × 2460 mm and 2200 × 2500 mm sizes) will increase to 19.4 percent, and 2.8 percent will be produced on Gen 10 lines.

Table 1: Large Area TFT LCD Production Unit Share by Fab GenerationSource: DisplaySearch Quarterly Large-Area Production Strategy Report

By application in Q1’09, 77.6 percent of mini-note PC (netbook) panels and 82.8 percent of notebook PC panels were made on Gen 5 lines. Since Gen 5 glass substrates are in shortage, the supply of notebook PC panels is expected to be tight in the next few months. About 3.4 percent of notebook panels were made in Gen 6, mainly by LG Display and CPT.

In Q1’09, 43.2 percent of monitor panels were made on Gen 5 lines, the first time Gen 5 production of monitor panels fell below 50 percent. DisplaySearch forecasts that in Q4’09, 55.7 percent of LCD monitor panels will be made in Gen 6 and larger fabs. Interestingly, 4.4 percent of LCD monitor panels were made on Gen 8 lines in Q1’09, solely due to Samsung 18.5”W and 21.5”W monitor panels.

In terms of TV, Gen 7 has a 47.7 percent share of TV panels; 29.8 percent were made on Gen 6 lines and 16.4 percent on Gen 8. In Q4’09, DisplaySearch forecasts that 28.4 percent of TV panels will be made on Gen 8 lines, compared to 23.3 percent on Gen 6.

The DisplaySearch Quarterly Large-Area Production Strategy Report discloses TFT LCD suppliers’ production plans, by size, application and generation. The top five TFT LCD makers are expected to account for 89.2 percent of panel production by area in 2009, a big leap from the 74.8 percent in 2008.

In total, TFT LCD makers are planning to input 105 million square meters of glass substrate for large-area panels in 2009, which represents 15.5 percent growth from the 90.9 million square meters in 2008.

Samsung is expected to lead TFT LCD production with 28.9 million square meters input in 2009, or 27.5 percent of the total, followed by LG Display at 25 million square meters, or 23.8 percent share. AUO is expected to rank third with 17 million square meters and 16.2 percent share, followed by CMO at 16.8 million square meters and 16 percent share, and Sharp will be fifth with 6 million square meters input and 5.7 percent share.

“DisplaySearch expects that TFT LCD production will experience another new wave of changes as Gen 8 production is increasing, and Gen 10 is expected to come on line by Q4’09. Production of smaller size panels in large fabs will increase, as it enables flexibility, and this will change the product mix,” said David Hsieh, vice president of DisplaySearch and leader of large-area TFT LCD research.

Hsieh continued: “Many monitor and TV panels are produced on the same generation lines, so when TV panels are in shortage, the monitor panel market becomes tight as well. On the other hand, the high production share of the top five large-area TFT LCD panel suppliers indicates that the large-area TFT LCD market is moving to new level of concentration.”

Samsung, RADVISION develop HD videoconference multimedia LCD monitor

InfoComm 2009, ORLANDO, USA: RADVISION and Samsung Electronics America, a subsidiary of Samsung Electronics Corp., unveiled the VC240, their first product on the market to integrate all the components required for high definition desktop video conferencing into a single unit at an affordable price.

The VC240 can operate as a standalone desktop HD video conferencing device and as a 24 inch high resolution monitor.

“Samsung is well-positioned in the future of telepresence and digital convergence, and this partnership with RADVISION brings to market a unique solution with the ability to scale,” says J.H. Kim, President of Samsung Electronics America, Information Technology Division. “The VC240 highlights our ability to provide superior display technology for any current or future display application.”

Ideal for conference rooms and businesses who want to conduct in-person meetings without the complexities associated with travel, the VC240 is an all in one video conferencing solution.

A Video and Voice over Internet Protocols (V2oIP) enabled network monitor, it is fully compatible with other VoIP systems including Session Initiation Protocol (SIP) based Multipoint Control Units (MCUs) and Unified Communications (MS). It can also function as a one to multipoint video conference with its built-in VoIP module.

“The VC240 breaks down barriers in the desktop market by allowing users to enjoy all the benefits of the high definition video communications experience at a fraction of the cost of existing hardware desktop solutions,” says Boaz Raviv, CEO of RADVISION.

“With the introduction of this product Samsung and RADVISION are literally changing the playing field by enabling wide scale deployment of HD video on the desktop. We are honored to partner with the world’s leading expert in LCD technology and together we will bring the market a new level of desktop video communications.”

New network technology
Leveraging Samsung’s renown front-of-screen performance, the VC240 also incorporates H.264 codec and a 5 megapixel camera and noise-cancelling microphones. The VC240 provides excellent video compression and high resolution images.

Special video and voice functions enhance the user experience in a video conference environment, including adaptive jitter buffer, lip synchronization, acoustic echo cancellation and voice activation detection while a 5ms response rate assures users of motion clarity with reduced blurring. A 1000:1 contrast ratio reduces eye fatigue and provides sharper text, deeper shadows and brighter colors.

The VC240 is fully interoperable with RADVISION’s SCOPIA line of products and complements RADVISION’s other desktop video solutions. It will also offer RADVISION’s latest advanced video features including SVC (Scalable Video Coding) and Forward Error Correction features ensuring the highest quality possible.

The VC240 also supports a rage of video and audio inputs, including DVI-I and VGA component connections.

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.

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

Samsung's new slim touch of color LCD monitors

RIDGEFIELD PARK, USA: Samsung Electronics America, a subsidiary of Samsung Electronics Corp., the number one worldwide brand of LCD display products, has released its 70 Series Monitors: the P2070, P2370 and P2370HD.

These slim LCD monitors, with screen depths of 30 mm (1.18 inches) for the P2070 and P2370 and 65.5mm (2.58 inches) for the P2370HD and Touch of Color (ToC) design, are the latest release of Samsung’s high performance displays.

“The 70 Series offers our customers a sophisticated-looking LCD monitor with the performance capability of our televisions,” said J.H. Kim, President of Samsung Electronics America’s Information Technology Division. “The 70 Series is the new standard as more people upgrade their monitors for additional uses, like watching television programs and playing video games.”

The 70 Series Monitors are ideal for office applications and entertainment with its dynamic contrast ratio (50,000:1) for deep, rich colors, while the 2ms (GTG) video response time minimizes blurring for watching sports and fast-moving gameplay. The crystal-like bezel frame with ToC reduces the reflection of light and glare. The glossy stand offers a polished design, while the clear, crystal-like acrylic neck gives the illusion the monitor is floating.

Samsung’s Startlight Touch Controls integrate the On Screen Display (OSD) buttons into the bezel for a seamless look and feel, eliminating obtrusive buttons on the front or sides on the panel. Gently touching any of the buttons illuminates the controls which automatically disappear after a set period of time, minimizing distractions.

The P2370 offers full HD 1080p resolution (1920x1080) for optimized viewing of HD content. For full HDTV capability, the P2370HD builds on the 1080p capabilities of the P2370 with the addition of a HDTV tuner, integrated speakers with SRS TruSurround HD(r) and remote control. In addition, the P2370HD also has HDMI and component inputs for additional connections such as Blu-Ray, set-top boxes and game consoles providing users with a display that is ready for work and play.

“The 70 Series is a great monitor for someone looking a full range of color, sharpness and response. It also has an added benefit for those concerned about the environment. We were sensitive to the impact computers monitors have on the environment and have developed a manufacturing process for the 70 Series that would minimize this,” said Tony Yu, Display Product Manager of Samsung Electronics America’s Information Technology Division.

The 70 Series offers a suite of eco-conscious features including reduced energy consumption, requiring about a third less power to operate compared to typical monitors of similar size. The ToC manufacturing process eliminates harmful paints and sprays, increasing the monitors’ recyclability. The slim footprint also dramatically reduces transportation costs and requirements for a smaller carbon footprint.

Low-cost, lightweight netbooks reach new audience

LONDON, UK: According to the Strategy Analytics Wireless Enterprise Strategies (WES) service report, “Netbook Vendor Models and Specifications Database,” two-thirds of netbooks sell for less than $500, and over 50% of netbook owners use the Windows XP Home Edition operating system.

While Asus remains, by far, the best-represented vendor, there are also a significant number of models from MSI, Acer, Gigabyte, Everex and Samsung.

“Just under a quarter of netbooks run any form of Linux operating system. However, Windows XP Home remains the dominant operating system, commented Andrew Brown, Director of Wireless Enterprise Strategies and author of the report.

“Over 50 percent of netbooks have screens smaller than 10 inches. While all models ship with WiFi, very few are purchased with integrated cellular connectivity. Strategy Analytics expects this to change with the growth in mobile operators as a channel for netbooks with service contracts,” he added.

This new report covers a wide range of technical specifications including Vendor, Model, Operating System, CPU, Graphics, RAM, HDD, Flash Memory, Keyboard, Mouse, Bluetooth, WiFi, WWAN, Weight (ounces), Screen Size, Resolution, Battery Capacity, Battery Life, ASP $ Model (unsubsidized) and Price Band.