Over 21 million LCD TVs were sold in the first three months of 2008 compared to 2.8 million plasma sets, according to a data compiled by research firm DisplaySearch.
The total number of TVs sold during the period was 46.1 million, up only 1% compared to sales in 2007.
The slow-down in sales is largely attributed to a weaker US economy.
Overall revenue rose 8%, however, to $24.8 billion USD, thanks to increasing sales of larger, more expensive LCD and plasma displays.
Aging CRT TVs were still the best selling, with 22.1 million sold, with LCD closely behind at 21.1 million.
Plasma and rear projection televisions had sales of 2.8 million and 134,000 sold respectively.
Year-over-year CRT sales were down 21%, LCD up 45%, plasma up 20% and RPTV down 79%.
In terms of brands, Samsung led in revenue for the 9th straight quarter, with an impressive 39% year-over-year growth
Flat panel TV demand is expected to be strong overall in 2008 and manufacturers are to use smaller screen sizes and low-cost models to stimulate demand among price conscious consumers.
This strategy is also expected to be adopted to maintain growth in mature markets, particularly as many consumers look to buy their second or third flat panel TV.
In terms of brand, Samsung was the global brand share leader in revenues for the ninth straight quarter, improving to more than 20% for the first time on robust 39% year-on-year growth.
Samsung also had the top ranking on a unit basis. Sony was ranked second on a revenue basis for the third straight quarter, declining about a point to 13.2% revenue share after a very strong Q4 performance.
LGE remained in third place, leveraging a second place unit share position to offset lower ASPs.
Tag: market-data
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Results shows global LCD TV sales outstripped plasma TV by 8:1 for Q1 of 2008
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Consumers in emerging markets favour smaller-screen models or TV-viewing PC monitors over large flat-panel LCDs
TV screens sized 32 inches or smaller and high-definition TV-viewing PC monitors are proving to be a popular option for many price-conscious consumers in emerging markets, such as China, India and Russia.
This goes against the forecasts of LCD screen-makers who had expected premium 40-inch sets to be the biggest sellers and spent heavily in a race to build larger factories suited for larger panels.
However, it is 32-inch TVs that have proved to be the most popular model for those replacing conventional cathode-ray tubes, whose market size was around 100 million units in 2007, according to Lehman Brothers.
High-definition monitors adopting the wider TV screen format are increasingly sold for TV viewing, as new technology such as broadband TV has blurred the line between monitors and TVs.
Champ Shin, vice president in charge of TV screen sales at LG Display,
“As of now, 32-inch is almost one third of the market,” he told the Reuters Global Technology, Media and Telecoms Summit.
“Up to now most LCD makers had focused on large screens only. But the growth rate of larger screens seems to be a bit slow.
“And there’s big demand for … TVs using monitor panels or smaller TV panels.”
This has led LG Display to switch some of its TV panel capacity to computer screen production, building a new line for smaller panels and strengthening ties with Chinese TV makers.
The company anticipates that the popularity of small-size TVs will continue for the next few quarters as the US economy stutters and the Chinese TV market takes off ahead of the Olympics.
And HB Chen, CEOof Taiwan’s AU Optronics Corp, said sales of monitor panel TVs – so-called “moniTVs” – sales could more than double in 2009 to top 50 million units.
“All these monitors can still provide very good TV performance. MoniTVs are a new segment to grow,” he said.
The entry-level 15-inch models are for students or emerging market consumers, while 19-inch is becoming a mainstream in the moniTV market.
However, Nigel Lee, a fund manager at Taiwan’s National Investment Trust, said he didn’t expect the popularity of the small-size TVs to last long.
He said aggressive price-cutting by TV makers would soon spur up demand for larger sets.
“Do you want to have that (a moni-TV) in your living room? I don’t think so. Large-size TVs will still be king in the future,” he said.
A looming panel oversupply in 2009 will only help make bigger TVs affordable sooner than expected.
After an industry-wide spending curb last year, new capacity from top makers such as Samsung and LG Display is set to hit the market early next year.
Analysts expect prices of 40-inch grade TVs in the US to fall below $1,000 by the 2008 fourth quarter, boosting demand.
Jeff Kim, analyst at Hyundai Securities, said: “Forty- and 42-inch TVs, along with the 32-inch model, will become the mainstream in the global market by 2010,” he said.
The phase-out of analog broadcasting in the US in early 2009 is also expected to speed up TV replacement demand.
," Mike Splinter, CEO of Applied Materials Inc, said: “In the US, the sweet spot is quickly moving to 40 inches.
“It (TV size) is going to continue to move up for the next few generations. I don’t know where the limit is.”
Research firm iSuppli forecasts worldwide LCD TV sales volume to top 100 million this year and reach 194 million in 2012. LCD TV shipments were at 78.5 million units in 2007. -
Young adults aged between 16-27 are driving demand for HDTV, according to Motorola study
Research by Motorola shows that young adults have a huge influence on their parents’ buying decisions for HDTV sets and programming packages.
The “always-on” generation are hungry for more control over when and where they access rich content such as high-definition (HD) programming and cable TV, the study found.
The ability to time-shift with DVRs and have access to HD programming were both highly desirable features.
In fact, data from Motorola’s study demonstrates the growth opportunity for service providers in bringing these services to the so-called Millennial generation (young adults aged 16-27) who don’t already have them.
The survey of 1,000 young adults found they are not only looking for more rich media, they are also greatly influencing the buying decisions for the services and technologies in the home and on the go.
The research found that 62 per cent of Millennials have influence over which HDTV set and programming package to buy.
And 70 per cent feel their expectations and demands are far greater than their parents’ for rich media experiences (such as mobile TV or video) and on-the-go broadband access.
Eduardo Conrado, corporate vice president, global marketing and communications, Motorola Inc., said the study explores how the preferences and habits of today’s Millennials are shaping the future of content consumption.
“With the Millennial generation, connectivity is an absolute must-have, as they’ve grown up with technology and the Internet,” he said.
“Millennials are now looking to make their connectivity more personalized and take experiences from ‘primetime’ to ‘my time.’
“This study provides a clear barometer to share with our customers that shows the changes in demand and growth opportunities as these critical users continue to
Other findings were that: * 46 per cent of Millennials already have HDTV, while 43 percent indicate they would like to have it.
* 73 percent of Millennials with HDTV access “love” current HD programming, while 35 percent of those with HDTV are looking forward to having a broader selection of HD programming offered in the future. -
DISH Network's profits rise despite drop in subscriptions
13 May 2008
DISH Network’s profits rise despite drop in subscriptionsDISH Network’s first-quarter net income rose 65% even though new subscriber growth of its satellite television service plunged on the languishing economy and stiffer competition.
In a Securities and Exchange Commission filing, the US company also cited satellite launch delays and problems within its operations as factors that dampened growth.
The results came as DISH, the US’s second-largest satellite television provider, said it was bolstering its HDTV service with an extra 22 national HD channels.
On making the announcement, the satcaster said the additions had boosted its total HD line-up to over 95 channels.
But almost immediately it moved to axe 10 of its 15 Voom High-definition programming package, taking the actual figure to around the mid-80s.
Eric Sahl, senior vice president of Programming for DISH Network, said: “We are excited to extend our competitiveness in HD by enhancing our already comprehensive HD lineup with these 22 channels, bringing our total HD lineup to over 95 channels.
“These launches, along with other recent additions such as the New England Sports Network (NESN) HD, reinforce our commitment to offer the best in entertainment.”
The programming changes coincided with the release of figures showing a sharp decline in the network’s subscriber additions in Q1 of 2008, down 90% from the previous year.
Dish experienced low uptake figures for Q1 – 35,000 compared with 310,000 the previous year – taking total subscribers to 13.8 million,
“Subscriber growth has been affected by worsening economic conditions, including the slowdown in new housing starts as well as by operational inefficiencies at Dish Network, signal piracy and other forms of fraud,” Dish Network said in its filing.
But it still managed to report higher quarterly profit thanks to lower expenses following the spin-off of set-top box business EchoStar.
Craig Moffett, analyst at Sanford Bernstein, said the subscribers gained by other carriers during the quarter “clearly” came from DISH.
The company itself admitted that “gross net additions were likely to continue to be negatively impacted by competitive factors”, such as the expansion of FIOS TV.
A press statement was not issued on the satcaster’s decision to drop 10 Voom channels but Dish’s web site and programming lineup now lists just five Voom HD channels: Monsters, Rush, Equator, Kung Fu, and Rave.
And on Dish’s channel 9472, the following statement appears: “As of result of these additions (20 new HD channels), we removed some channels that are less popular with our customers. These channels are not available with any other satellite provider.”
The decision to reduce the number of Voom channels was not unexpected.
The Supreme Court of New York last month denied Voom’s request for a preliminary injunction to block Dish Network from terminating its agreement to carry all 15 high-def channels.
The satcaster informed Voom last year that it would move the 15 HD channels to a less watched programming tier.
Voom objected to the plan, saying it would reduce its programming fees and jeopardise its business.
Following a series of negotiations, Dish informed the programmer that it planned to terminate the agreement entirely, which led to the court battle. -
Rising demand for HD video in China will play a part in increasing pressures on bandwidth.
User-generated video (UGV) is growing faster than expected fuelled by significant expansion in the Chinese market, according to a study by high-tech market research firm In-Stat.
The spiralling growth rates have led to forecasts for UGV use and revenue shifting upwards since last year.
Researchers at In-Stat found that total worldwide UGV revenue is expected to eclipse US$1.19 billion by 2012, with an estimated 160 billion UGV served videos forecast for 2012.
And with expectations of higher quality content, such as HD video, and increasing file size maximums, the demands on bandwidth are expected to continue growing at a faster rate than the number of files/videos served.
Michael Inouye, In-Stat analyst, said: “User-generated video (UGV) and the video sharing sites that exemplify this form of content have spread across the globe.
“China is a prime example of UGV’s global reach and appeal, capturing a significant portion of the world market, making it second only to the US.
“In general, viewing of online video has increased in the US in the past year, although participation is still stratified by age.”
The study, “User-Generated Video, A Global Stage for you”, also predicts that individuals who use mobile phones to participate in online video sites are most likely to contribute to the market (both financially and in terms of content).