Q1'10 Shipments Show Global TV Market Continues to Recover

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TV Shipments Rise 25% Y/Y, LCD TVs Increase 50% on Strong Demand in Most Regions

Table 1: Q1'10 Worldwide TV Shipments by Technology (000s)

Not all regions saw such strong growth though, as North America TV shipments increased just 1% Y/Y, although demand certainly seems to have been stronger than supply during Q1.

TV shipments continued to show a strong rebound in growth rates from the very weak levels of early 2009 as improving global economic conditions led to greater demand for TVs. According to the latest TV shipment data from the DisplaySearch Quarterly Advanced Global TV Shipment and Forecast Report, total TV shipments increased 25% Y/Y in Q1’10 to 55M units, while LCD TV shipments showed a 50% Y/Y improvement to more than 40M units, very close to expected levels. Other TV technologies showed strong results as well, with plasma TV shipments surging 21% Y/Y to 3.4M units. CRT TVs, which had been averaging 40% Y/Y shipment declines during most of 2009, had a only a 21% decline in unit shipments, with emerging market demand for TVs ahead of the 2010 World Cup soccer tournament injecting life into the fading technology.

Even mature flat panel TV markets had strong results in Q1’10. Japan, which completed the transition from CRT to flat panel TVs several years ago, enjoyed a 93% Y/Y increase in LCD TV shipments and a 38% increase in plasma TV shipments as a government sponsored stimulus program, the green Eco-Points initiative, is nearing its expiration, spurring consumers to upgrade. In Europe, the upcoming World Cup and digital TV transition in several countries drove a 33% Y/Y increase in TV shipments during Q1’10 as brands and retailers prepared for the increased level of demand.

“Not all regions saw such strong growth though, as North America TV shipments increased just 1% Y/Y, although demand certainly seems to have been stronger than supply during Q1,” noted Paul Gagnon, Director of North America TV Market Research for DisplaySearch. “As TV brands faced a tight supply situation, it seems that brands made some tough choices on where to allocate product, opting for more profitable regions like Europe and Japan where competition and margin pressure isn’t as intense.”

LED Backlights Account for 8% of LCD TV Units Shipped in Q1’10 and More Than 17% of Revenues

As TV brands aggressively transition their lineups away from CCFL backlights to LED backlights in an effort to increase average prices and profits, most are facing an immature LED supply chain struggling to keep up. As a result, supply shortages are keeping key component prices high, along with the market premium of LED-backlit sets over CCFL-backlit counterparts. Even so, the share of LCD TV shipments with LED backlights nearly doubled from 4% in Q4’09 to nearly 8% in Q1’10, the vast majority of which were edge-lit models. Penetration of LED backlights in LCD TV shipments was highest at larger screen sizes, with LED share at more than 35% of 50”+ in Q1’10, compared to less than 4% below 40”.

Samsung Leads Global Brands with Top Unit and Revenue Share in Q1’10

Samsung’s global TV market share pulled back from record levels reached in Q4’09, but still led all other brands by a healthy margin, at 21.9% of global TV revenues in Q1’10 (Table 2). Samsung continues to be aggressive in taking leadership positions for new technologies, such as LED in 2009 and 3D in 2010. Such actions have led to strong unit growth and high average selling prices. Samsung was the #1 brand in LCD TV and #2 in plasma TV.

LGE was the #2 brand worldwide in TV shipment revenues, increasing their share to 14.8%, a record result for the brand. LGE also had the best Y/Y revenue growth among the top five brands with strong share expansion in nearly every region, aside from Eastern Europe and Japan, where the brand doesn’t participate.

Sony rounded out the top three brands in global TV revenues during Q1’10, declining in share to just under 10% after a strong surge in growth during Q4’09. Sony’s 34% Q/Q decline in revenues also led the top five brands and was the only brand among the top five with a Y/Y decline in TV revenues. Panasonic and Sharp rounded out the top five global TV brands, on a revenue basis.

DisplaySearch’s TV market intelligence, including panel and TV shipments, TV shipments by region, brand, size, resolution, frame rate and backlight type for nearly 60 brands, rolling 16-quarter forecasts, TV cost/price forecasts and design wins can be found in its Quarterly Advanced Global TV Shipment and Forecast Report. Please contact Charles Camaroto at 1.888.436.7673 or 1.516.625.2452, e-mail contact at displaysearch.com or contact your regional DisplaySearch office in China, Japan, Korea or Taiwan for more information.

Register Now For the TV Ecosystem Conference: Managing the Innovation Cycle, August 19 in San Jose

In 2010, there will be three major innovations in the TV industry: 3D TVs, LED backlights in LCD TVs and internet-connected TVs. Not only will these developments increase the entertainment value of TV, they hold the opportunity to offset the pace of price erosion. These critical issues will be discussed at the DisplaySearch TV Ecosystem Conference to help all members of the TV ecosystem obtain value and avoid another round of rapid devaluation.

For more information about this conference and sponsorship opportunities, please contact Laura Castellano at 408.418.1904 or laura.castellano at displaysearch.com. Media interested in attending the conferences should contact Stacey Voorhees-Harmon at 925.336.9592 or stacey at savvypublicrelations.net.

About DisplaySearch
Since 1996, DisplaySearch has been recognized as a leading global market research and consulting firm specializing in the $770 billion display supply chain, as well as the emerging photovoltaic/solar cell industries. DisplaySearch provides trend information, forecasts and analyses developed by a global team of experienced analysts with extensive industry knowledge and resources. In collaboration with the NPD Group, its parent company, DisplaySearch uniquely offers a true end-to-end view of the display supply chain from materials and components to shipments of electronic devices with displays to sales of major consumer and commercial channels. For more information on DisplaySearch analysts, reports and industry events, visit us at http://www.displaysearch.com . Read our blog at http://www.displaysearchblog.com and follow us on Twitter at @DisplaySearch.

About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,700 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us or visit http://www.npd.com and http://www.npdgroupblog.com. Follow us on Twitter at @npdtech and @npdgroup.

Media Contact:
Stacey Voorhees-Harmon
Public Relations Consultant
Phone: 925-336-9592
E-mail: stacey at savvypublicrelations.net


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