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

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.

E-paper market to soar to $2.1 billion by 2015: Displaybank

BUNDANG, SOUTH KOREA: Displaybank projects the e-Paper market to grow from $70 million in 2008 to $2.1 billion in 2015 and $7 billion by 2020 -- representing a CAGR of approximately 47 percent.

Displaybank also projects the e-Book market to comprise 50 percent of the total e-Paper market during that same period -- growing from $35 million in 2008 to $1.1 billion in 2015 and $3.4 billion by 2020 -- with the greatest regional demand coming from the US. These and other findings are disclosed in Displaybank's newly published e-Paper Display Technology and Market Forecast Report, which is the first report of its kind focusing on the e-Paper market in comprehensive detail.

Peter Kwon, Displaybank CEO noted: "It's nice to see that despite the current economic environment, certain technology applications are still gaining strong traction with consumers now, as well as present significant growth prospects in the coming years. The e-Paper market is a clear example of this, with e-Books representing a key 'killer application' that will take the merging of information and mobility to new heights. Being at the forefront of the display industry gives Displaybank a unique perspective on the exciting developments underway in the e-Paper market, and we look forward to seeing the continuing emergence of new technologies and applications to support this market."

According to Displaybank, Amazon currently leads in the e-Book market based on the abundant content that it offers. The growth of the e-Book market depends on not only the specifications of the reading device, but also on the available content and service offerings. As a result, Displaybank predicts that Sony's recently announced partnership with Google, the world's largest digital content provider, will propel Sony back into the e-Book market and allow it to serve as a formidable challenger to Amazon.

In addition to the e-Book market, Displaybank foresees myriad applications for e-Paper display technology due to its flexibility, ability to process electronic information and low power consumption. These include mobile displays, public displays such as electronic billboards and advertisements, as well as smart cards, Electronic Shelf Label (ESL) and Point of Purchase (POP) applications.

Improvements in e-Paper display technology such as contrast ratio, color display and durability will be needed to support these and other future applications. For example, larger-scale information displays will require improved precision in color display, while outdoor displays will need improved durability against heat and impact.

e-Paper displays using glass substrates are currently mass produced by Taiwan-based PVI and Korea-based LG Display. According to Displaybank, the first maker to utilize flexible substrate in e-Paper display is expected to be LG Display. LG Display is currently developing amorphous silicon thin-film transistor (TFT) technology-based flexible e-Paper displays using a metal foil substrate in co-operation with E-ink. During the second half of 2009, Displaybank predicts that 11.5-inch flexible e-Paper displays will enter the market in mass production.

The strength of Displaybank's new report is in its detailed analysis of the myriad e-Paper technology currently available along with regional R&D, technology and application trends. In addition, the report covers the necessary steps needed for performance enhancement through technology development and development factors, as well as product delivery forecasts. Coupled with a comprehensive forecast for both replacement and newly created markets, this report truly covers all aspects of e-Paper display technology, unlike any other.

Handheld video game player shipments to rise 4.9 percent in 2009

EL SEGUNDO, USA: The global market for handheld video game systems is set to buck weak conditions in the global consumer electronics market and rise by 4.9 percent in units and 8.2 percent in revenue during 2009, due to moves by Sony Corp. and Nintendo to freshen up their products, according to iSuppli Corp.

Sony in October 2008 updated its PlayStation Portable (PSP) device and Nintendo in November did the same for its DS device, now called the DSi.

Shipments of handheld game consoles are expected to grow to 63.5 million units by 2013, up from 49.4 million units in 2008. This equates to a Compound Annual Growth Rate (CAGR) of 5.2 percent during the forecast period. Revenues are set to grow to $8.1 billion by 2013, rising at a CAGR of 6.4 percent from $5.9 billion in 2008.

“While the long-term growth rate isn’t staggering by any means, Nintendo’s and Sony’s platform revisions should keep their portable game console shipments growing until they are able to roll out next-generation handheld platforms,” Pamela Tufegdzic, analyst, consumer electronics at iSuppli.

“However, if both companies had introduced true next-generation platforms, the level of growth in 2009 and beyond would have been much higher. Most consumers will hold off on any purchase or upgrade until a next-generation handheld gaming device is available. iSuppli believes Sony and Nintendo will not introduce next-generation handheld video game consoles until 2011, at the earliest,” she added.

The figure presents iSuppli’s worldwide forecast for the handheld gaming market for both unit shipments and revenue.

PSP-3000
In October of 2008, Sony updated its venerable PSP device, called the PSP-3000, with a retail price of $169.99. The main upgrades to the device included an integrated microphone, a screen with a five times brighter color ratio, new button designs and anti-reflective technology to improve outdoor playability.

iSuppli believes that at some time after 2010, Sony will release a new portable gaming platform that will help to further drive the handheld gaming market.

Nintendo DSi
In November 2008, Nintendo launched its third generation of DS, called the DSi, in Japan. Nintendo in April released the device in Europe and North America.

The main enhancements to the Nintendo DSi revision include a form factor that is 12 percent thinner than the DS Lite, upgraded dual screen displays enlarged to 3.25-inches in size, the integration of two digital cameras, improved speakers, an SD card storage slot and internal flash memory for storing downloaded games.

At a retail price of $169.99, the DSi will allow Nintendo to continue to expand its sales despite a weak economy until it rolls out a new multifunction device in the next few years.