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Tag: lcd

  • The Slow Decline of an Industry Giant

    The Sharp Corporation has been in business for over a hundred years, and has been a major player in the home entertainment industry for decades. But last Friday stockholders showed their displeasure with the company’s recent strategy, resulting in a near 30% drop in share prices.

    This came on the heels of the company’s announcement that it might be in line for as much as a $1.28 billion loss this fiscal year. And after declaring they would cut as many as 5,000 jobs from their international payroll, industry experts are predicting the beginning of the end for this once proud company.

    Sharp laid off the entire advertising and marketing department at its American headquarters, and those looking for reasons should look no further than their bottom line. Sharp enjoyed a LCD TV/HDTV market share of about 21% just seven years ago. Last year, that number had dropped all the way to under 8%.

    A couple of years back, sensing the impending disaster, Sharp put more than $4 billion into a new fabrication facility in Sakai City. They would own more than one third of the business, giving them a huge leg up in manufacture. However, when their money dried up, they ended up having to cut that investment down to under 10% of the company, and looked for another company to bring in additional investment.

    Hon Hai Precision, Taiwan’s parent company to Foxconn jumped in. The problem for Sharp was that Hon Hai’s investment ended up costing them only twenty cents on the dollar compared to what Sharp originally paid, and Hon Hai also became the largest investor through the deal.

    Even that miserable outcome hasn’t saved Sharp yet, as the investment is still waiting to be made official. Add that to Sharp receiving a debt rating from Moody’s Investors Service of Prime-3, basically the lowest grade an investment can receive, and the writing is clearly on the wall for this once proud industry leader.

  • TV Shipments Set to Decrease in 2012

    According to experts in HDTV and TV trends, worldwide shipments will drop by 1.4% during the course of 2012. NPD DisplaySearch announced the drop in their Quarterly Global TV Shipment and Forecast Report, which was released earlier this month.

    According to the details of that report, 245 million televisions will ship in 2012. Shipments of LCD TVs, one of the largest growth areas in the industry, will still increase by 5%. But that growth is down 2% from 2011.

    DisplaySearch believes the decline is due to the market for traditional televisions shrinking, and the fact that there just aren’t as many discounts this year as there were last year. They’ve also noticed more cautious spending practices by Asian and European consumers. For reference, average prices have declined 4% in 2012, down from a 10% decline back in 2010.

    According to the company’s Director of North American TV Research, the economic concerns still felt around the world are impacting both consumers and manufacturers. HDTV companies are feeling the need to hang on tighter to their profit margins, which consumers hang on to their money.

    The only area that seems to be significantly growing is in large screen televisions and backlit devices. Outside of North America, emerging markets of China, Latin America and Eastern Europe, are making up for some of that consumer reluctancy, and even Africa and the Middle East are showing growth.

    All in all, LCD technology is maintaining significant growth. It’s surpassed CRT and plasma devices, and now actually make up for almost 90% of worldwide television shipments.

  • VIZIO Unveils 65-inch Theater 3D Razor LED HDTV

    VIZIO announced the introduction of their new Theater 3D technology with the launch of the 65" Theater 3D Edge Lit Razor LED LCD HDTV with VIZIO Internet Apps. The 65" XVT3D650SV is VIZIO’s largest HDTV ever.

    The company claims that their Theater 3D technology provides a superior alternative to conventional 3D by utilizing battery-free, affordable and lightweight 3D glasses causing less eyestrain than the current "Active Shutter" technology. According to VIZIO, "Theater 3D technology produces clear, flicker-free 3D images that are noticeably brighter than conventional 3D and eliminates costly and bulky 3D eyewear that requires batteries or charging."

    The XVT3D650SV supports a wide selection of 3D formats to ensure compatibility across Blu-ray, broadcast, cable, satellite, and gaming. In addition to the standard formats, VIZIO also supports SENSIO Hi-Fi 3D, the high quality, visually lossless 3D format that enables 3D content to be delivered over 2D infrastructure as well as RealD’s patented side-by-side format.

    VIZIO’s Smart Dimming technology in this Edge-Lit Razor LED intelligently controls its array of LEDs, which are organized in 32 zones. Working frame by frame, based on the content being displayed, Smart Dimming adjusts brightness in precise steps down to pure black (where the LED is completely off). This cutting edge technology minimizes light leakage, and enables a Dynamic Contrast Ratio of 1 Million to 1, for blacker blacks and whiter whites on the same screen.

    The XVT3D650SV also features the latest VIZIO Internet Apps (VIA) Connected HDTV platform. Current Apps from top online content and service brands include: Amazon Video On Demand, Facebook, Flickr, Netflix, Rhapsody, Pandora, Twitter, VUDU and Yahoo! TV Widgets. Additional Apps recently released include Fandango, Yahoo Fantasy Football, NBA Game Time, Wiki TV, My-Cast, MediaBox, TuneIn Radio, Web Videos and iMemories.

    "Our Theater 3D technology is a significant step forward in bringing a high-quality, immersive experience home to consumers," stated Matthew McRae, VIZIO CTO.

    "The bright and flicker-free images, extremely low crosstalk, and comfortable glasses allow extended viewing of content without the side-effects associated with the first generation of 3D technology. This is increasingly important as more content is released and 3D gaming goes mainstream," he added.

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  • iSuppli: Vizio and Samsung Split Leadership in U.S. TV Market in Q3

    In the latest twist in the battle between Vizio and Samsung for leadership in the U.S. television market, Vizio managed to retake the No. 1 rank in LCD TV shipments, while Samsung maintained the top position in overall flat-panel sets, according to the display market research firm iSuppli.

    Vizio in the third quarter shipped 1.6 million LCD TVs, up 14.9 percent from 1.4 million in the second quarter. This gave the U.S. LCD TV maker a 19.9 percent share, allowing it to surpass Samsung, to take the No. 1 rank. Samsung’s shipments declined by a slight 1.5 percent in the third quarter, leaving it with it a 17.7 percent share.

    However, Samsung held onto its first-place position in U.S. shipments of overall flat-panel televisions, a category consisting of LCD TVs and plasma sets. The South Korean technology giant shipped 1.82 million flat-panel sets in the third quarter, up 0.2 percent from 1.81 million in the second quarter. This gave Samsung a 19.3 percent share of shipments, enough to maintain the No. 1 rank over Vizio.

    “Vizio in the third quarter managed to retake leadership in the U.S. LCD TV market based on strong shipments of sets equipped with LED backlighting,” said Riddhi Patel, principal analyst, television systems, for iSuppli. “Consumer demand is rising rapidly for LED-backlit LCD TVs because of their thinner form factors, improved picture quality, better color saturation, lower power consumption and other green attributes—along their with declining prices. This allowed Vizio to increase its LCD TV sales by 208,000 units in the third quarter compared to the second.”

    According to Patel, Vizio’s competitiveness in the LED backlit television market reflect how much the company has evolved from its beginnings as a low-end LCD TV seller. LED backlighting represents a premium feature, not associated with inexpensive LCD TVs.

    “Vizio can no longer be called a value LCD TV brand and now is a direct competitor with premium sellers, including Samsung,” Patel observed.

    Samsung in the third quarter capitalized on its broad product line to hold on to U.S. flat panel leadership. Along with its LCD TV line, Samsung is a major seller of plasma sets. The company achieved a 7.2 percent increase in plasma set shipments, more than compensating for its LCD TV decline.

    U.S. LCD TV shipments expanded in on a sequential basis in the third quarter as a range of compelling new models arrived on the market. Shipments amounted to 8.04 million units, up 8.1 percent from 7.4 million in the second quarter.

    However, in a worrying sign for the U.S. LCD TV market in 2010, shipments declined slightly compared to 8.09 million units in the third quarter of 2009.

    “Sales promotions in the third quarter did not offer very aggressive price cuts, because pricing already was at low levels,” Patel said. “This kept shipment levels flat compared to a year earlier, and contributed to a buildup of LCD TV inventory among retailers.”

  • Smartphone and Tablet Sales Ignite Advanced LCD Market in 2010

    Rapidly rising sales of smartphones and tablet PCs in 2010 will cause the global market for small- and medium-sized TFT LCD panels to expand at its fastest pace in three years, according to iSuppli.

    In its latest report, the market research firm finds that global shipments of small/medium TFT LCD panels, which are advanced types of displays used in sophisticated mobile devices like smartphones and tablet PCs, are set to rise by 28.1 percent in 2010 to reach 2.3 billion units, up 28.1 percent from 1.8 billion in 2009. This will represent the highest level of growth for the market since 2007, when shipments rose by 49.8 percent.

    “Sales of smartphones and tablets are booming in 2010 courtesy of the iPhone, the iPad and a range of competing products. Because such devices focus on delivering a high-quality user experience, many are employing TFT-LCD displays that offer bright, sharp images—a move that represents a boon for the suppliers of these displays,” said Vinita Jakhanwal, director of small and medium-sized displays at iSuppli.

    Global smartphone shipments are set to rise by 35.5 percent in 2010, according to iSuppli. Meanwhile, tablet PC shipments will grow by a stunning 787.3 percent, driven almost entirely by Apple’s iPad.

    Inspired by the iPhone 4, smartphone makers are adopting TFT LCDs using In-Plane Switching (IPS) technology. IPS supports a wider viewing angle and better picture quality in terms of presentation of color than a conventional LCD. It also consumes less electricity.

    Jakhanval said that all TFT-LCD suppliers now are making alliances or developing their own technology so that they can offer IPS displays to their smart phone and tablet customers.

    Meanwhile, a competing advanced display technology known as the Active Matrix Organic Light Emitting Diode (AMOLED) also is experiencing rapid growth in the small/medium display market, iSuppli’s electronic display research indicates. AMOLEDs are expanding because of the rise of the Android smart phone market.

    Growth in TFT LCD shipments will slow in 2011 and beyond as the expansion of the smart phone and tablet markets cools to more normal levels.

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  • Slow Television Sales Spur LCD Panel Oversupply

    Shipments of large-sized LCD panels vastly exceeded end-market sales of televisions, monitors and notebook PCs in the first half, spurring a major buildup of inventory of the LCDs and finished products, including LCD-TVs, according to iSuppli.

    The research firm finds that a total of 46.8 million LCD-TV panels shipped in the first quarter of 2010. However, although LCD-TV set shipments equaled only 37.5 million units—an overage of 24.5 percent, iSuppli’s electronic display industry analysis indicates.

    In the second quarter, large-sized LCD-TV panel shipments grew to 52.0 million units, but actual set shipments amounted to only 38.7 million units. This gap of 36.4 percent, higher than anything seen in 2009, has pushed the market to further levels of oversupply, especially in the face of an uncertain outlook in the second half of 2010.

    “Coming amid fears of a slowing economy and the possibility of a double-dip recession, the inventory increases in the LCD TV retail channel are raising concerns throughout the display supply chain—from panel suppliers to contract manufacturers and brands, to retailers,” said Sweta Dash, senior director for LCD research at iSuppli.

    According to iSuppli, inventory levels for both suppliers and buyers have caused a ripple effect on pricing as large-sized LCD panel pricing dropped again in July, taking some panels down to the manufacturing cost level. In August, prices dropped another 4.4 percent because of the continuous inventory adjustment, with a further decline expected in September.

    Some low-priced panels were already reaching the cash cost level—and the oversupply situation is not helping matters, iSuppli indicates. These developments have prompted a series of production cuts by some panel suppliers in order to bring panel supply and demand back to balance.

    Although pricing for the LCD-TV sets themselves surged upward in July in the United States, prices are likely to have declined in August and will do so again in September, as brands and retailers have to become aggressive once again with their promotions in the upcoming months in order to fuel demand, iSuppli believes.

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  • U.S. LCD-TV Market: Samsung Maintains Lead, but Vizio Closes Gap in Q2

    The battle for the top spot in the U.S. LCD-TV market heated up in the second quarter as the gap in market share between No. 1 Samsung and No. 2 Vizio dwindled to less than 1 percentage point, according to the electronic display research firm iSuppli.

    The research show that Samsung in the second quarter held a 0.7 percentage point lead over Vizio in terms of U.S. LCD-TV shipments, compared to 1.3 points in the first quarter. Both companies in the second quarter dramatically outperformed the overall market by offering sets with advanced features desired by U.S. consumers.

    “Leadership in the world’s largest television market—the United States—represents the marquee position for global LCD-TV brands,” said Riddhi Patel.

    “Because of this, companies are competing intensely to secure every point of market share—with the most closely fought battle occurring between South Korea’s Samsung and U.S.-based Vizio. The two companies have swapped quarterly leadership multiple times during the past few years, and now are virtually tied in the race for market leadership,” she added.

    According to the report, U.S. LCD-TV shipments rose by 12.8 percent in the second quarter to 7.36 million units, up from 6.53 million in the first quarter.

    Samsung’s shipments grew at more than twice the pace of the overall market, rising by 26 percent to 1.45 million units, up from 1.15 million in the first quarter. Vizio grew even faster, with its shipments rising by an industry-leading 30.8 percent to 1.39 million units, up from 1.07 million in the first quarter.


    Pattel noted that in the past, the two companies pursued very different strategies to attain LCD-TV market leadership, with Samsung focusing on premium products and Vizio stressing low-cost value-oriented LCD-TVs. However, as U.S. consumer preferences have shifted to higher-end LCD TVs, Vizio has realigned its product line to offer more advanced features.

    “Most LCD-TVs purchased in the United States in 2010 are replacements of first-generation flat panels,” Patel said. “Because of this, U.S. consumers are more informed and demand larger LCD-TVs with better picture quality and more premium features, including 3-D, LED backlighting and built-in Internet connectivity. While Samsung continues to lead these technological trends, including the nascent 3-D TV segment, Vizio has significantly closed the feature gap.”

    Television research from iSuppli’s U.S. TV Consumer Preference Analysis service, which surveys Americans on their attitudes regarding television purchases, illustrates the rising importance of advanced features when buying a television.

    Of consumers surveyed in the second quarter, 17.2 percent said the LCD-TV sets they had purchased used LED backlighting, an increase of 5 percentage points from the first quarter. Furthermore, 60.8 percent of the consumers purchased a 40-inch or larger set in the second quarter of 2010, up from 51 percent during the same period in 2009. Finally, about 32 percent consumers say they connected their new televisions to the Internet.

  • Samsung Takes Lead in U.S. LCD-TV Market in Q1

    Samsung in the first quarter of 2010 regained the leading position in the U.S. LCD-TV market, as the company capitalized on rising consumer demand for television sets with advanced features, including LED-backlighting, built-in internet connectivity and 3-D images, according to iSuppli.

    Samsung in Q1shipped 1.1 million LCD-TV sets in the United States. While this was down 33 percent from the fourth quarter, Samsung actually outperformed the overall U.S. LCD-TV market, which contracted by 35.8 percent sequentially due to seasonal factors. "This allowed Samsung to increase its market share to 18 percent in the first quarter, up from 17.3 percent in the fourth quarter, giving it the top position in the U.S. market," said Riddhi Patel, principal analyst, television systems, for iSuppli. 

    According to her, the year 2010 "marks a major transition period for the U.S. LCD-TV market, when consumers increasingly are gravitating toward sets with more advanced features.”

    “With Samsung at the forefront of trends including LED backlighting and 3-D, the company has been able to outperform the market and its closest competitors,” she said.

    The report finds that Samsung of South Korea retook the lead from U.S.-based brand Vizio, whose unit shipments declined by 42.2 percent sequentially in the first quarter. Vizio and Samsung have been engaged in a tight race for leadership in the U.S. LCD-TV market, with the two companies frequently swapping the No. 1 position from quarter to quarter. Samsung held a 1.3 percent point lead over Vizio in the first quarter of 2010, the same margin in which Vizio led Samsung in the fourth quarter of 2009.

    According to iSuppli, the U.S. LCD-TV market in 2010 is set to undergo a rapid transition away from traditional Cold Cathode Fluorescent Lamps (CCFLs) and toward LED backlighting technology. Shipments of LED-backlit LCD-TVs in the United States are projected to rise to 7.7 million units in 2010, up about 600 percent from 1.1 million in 2009. LED-backlit models will account for nearly one-quarter of all U.S. LCD-TV shipments in 2010, at 23.4 percent, up from only 3.4 percent in 2009.

    Meanwhile, Internet-Enabled Televisions (IETVs) are attracting consumer interest, with U.S. shipments expected to rise to 11.8 million units in 2010, up from 6.9 million in 2009.

    Among U.S. consumers that purchased new televisions in the first quarter, 26.8 percent indicated their new sets were connected to the Internet, either though the internal capabilities of their TVs or via external devices, such as digital video boxes or game consoles. This is up from 24.3 percent in the fourth quarter of 2009. Over time, IETVs will account for a rising portion of Internet connectivity in televisions.The most popular types of Internet content accessed by consumers are movies and social networking services.

    The research group says that U.S. shipments of 3-D TVs—introduced to the market for the first time in March—are expected to reach 1.45 to1.5 million units in 2010, thanks to increasing acceptance from enthusiastic early adopters.

  • $220 Million Fine For Participating in LCD Price-Fixing Conspiracy

    The U.S. Department of Justice announced that a LCD producer and seller has agreed to plead guilty and pay $220 million in criminal fines for its role in a conspiracy to fix prices in the sale of LCD panels.

    According to a one-count felony charge filed in U.S. District Court in San Francisco, Chi Mei Optoelectronics participated in a conspiracy to fix the prices of LCD panels sold worldwide from Sept. 14, 2001, to Dec. 1, 2006.

    Companies directly affected by the LCD price-fixing conspiracy are some of the largest computer and television manufacturers in the world, including Apple, Dell and HP.

    According to the charge, Chi Mei carried out the conspiracy by agreeing during meetings, conversations and communications to charge prices of LCD panels at certain pre-determined levels and issuing price quotations in accordance with the agreements reached.

    As a part of the conspiracy, Chi Mei exchanged information on sales of LCD panels for the purpose of monitoring and enforcing adherence to the agreed-upon prices.

    Chi Mei, which is based in Tainan, Taiwan, is charged with price fixing in violation of the Sherman Act. Each violation carries a maximum fine of $100 million for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

    Including the charges, as a result of this investigation, six companies have pleaded guilty or have agreed to plead guilty and have been sentenced to pay or have agreed to pay criminal fines totaling more than $860 million.

    Additionally, nine executives have been charged to date in the department’s ongoing investigation.

    Department of Justice informed that the charge is the result of a joint investigation by the Department of Justice Antitrust Division’s San Francisco Field Office and the FBI in San Francisco.

  • LED Breathes New Life into Monitor Market

    Capitalizing on the slim form factor and energy savings potential, the use of LEDs in LCD monitor panels is growing rapidly, according to DisplaySearch.

    “Although the desktop monitor market is mature, panel makers and brands are working together to develop new features such as slimness and lower power consumption to rejuvenate the sector,” say the analysts.

    Panel makers are using LED backlights in mainstream monitor sizes such as 18.5”, 19”, 22”, and 23”/24”. Although LED backlight penetration in monitor panels was only 1.4% in Q3’09, current panel maker plans indicate that the penetration could reach 22% in Q3’10, assuming adoption by brands.

    According to DisplaySearch’s latest Quarterly LED Backlight Panel Shipment & Forecast Report, InnoLux was the leading supplier of LED backlit monitor panels in Q3’09, with 34.4% of unit shipments.

    Other panel makers producing such panels include LG Display, AUO, Samsung and CMO. Brands like Samsung, Dell, LG, Acer, Lenovo, BenQ and AOC began launching LED backlit LCD monitors ranging from 18.5” to 24” in Q3’09.

    DisplaySearch says in Q1’10, 20”, 23.6” and 27” panels will enter the market. In addition, there are small LCD TV sizes such as 26” that are adapting monitor panels, the LED backlight is also brining the attractions to this segment.

    TV brands like Vizio are promoting 18.5” and 23” LCD TV using LED backlit monitor panels, and more brands are expected to join in 2010.

    “LEDs have significant advantages over traditional backlights, such as power consumption, slim form factor, and product differentiation,” noted Brian Chen, DisplaySearch Research Director for TFT LCD & Materials and the author of the report.

    He claims while there are still some technical concerns such as brightness performance, the LED backlight premium in the LCD monitor is much smaller than LCD TV.

    “Meanwhile, the awareness of green technology and energy savings factors in LEDs has generated consumer demand. We are seeing panel makers and also monitor brands promoting LED backlights—resulting in panel makers’ aggressive target for 22% penetration in Q3’10,” he said.