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  • Vizio Maintains Lead in U.S. LCD TV Market

    Riding a wave of demand for its light-emitting diode (LED)-backlit televisions, Vizio managed to maintain leadership in the U.S. market for LCD TV in the fourth quarter as well as for the entire year in 2010, according to new IHS iSuppli research.

    U.S.-based Vizio in the fourth quarter shipped 2.9 million LCD TVs, up 78.9 percent from 1.6 million in the third quarter. This gave the company a 27.6 percent share of unit shipments, up from 19.5 percent in the third quarter. Vizio’s lead over second-place Samsung expanded to 7.4 percentage points in the fourth quarter, up from 2.1 percentage points in the third quarter.

    Topped by a strong fourth-quarter performance, Vizio padded its leadership of the U.S. LCD TV market for the entire year of 2010. Company market share amounted to 21.3 percent in 2010, up from 18.3 percent in 2009. Vizio’s lead expanded to 2.5 percentage points over chief rival Samsung, up from 1 point in 2009.

    “Vizio’s market share gains in the U.S. LCD TV market in 2010 were driven by strong consumer demand for the company’s LED-backlit sets,” said Riddhi Patel, director, television systems for IHS. “Vizio has been able to offer sets with this advanced feature while maintaining competitive pricing. Consumers are snapping up LED-backlit LCD TVs from Vizio and others because of their thinner profile, superior picture, lower power consumption and reduced prices.”

    Vizio Takes Flat-Panel Lead in Q4 2010 but Samsung Takes the Year

    Vizio in the fourth quarter of 2010 also managed to displace Samsung for leadership in the U.S. market for flat-panel televisions, a category that combines the LCD TV and plasma segments. With its strong business in both plasma and LCD sets, Samsung historically has led this area. However, Vizio captured the lead because of aggressive shipments of feature-rich LCD TVs at attractive pricing through its distribution network.

    Vizio in the fourth quarter shipped 2.9 million flat-panel sets, up 78.9 percent from 1.6 million in the third quarter and a 55.5 percent increase from 1.8 million in the fourth quarter of 2009. This gave Vizio a 23.9 percent share of the U.S. flat-panel market in the fourth quarter, up from 16.6 percent in the third quarter.

    Meanwhile, Samsung’s share rose to 21.5 percent in the fourth quarter, up from 18.8 percent in the third. While its share rose, the increase was not sufficient to keep it from falling to second place in the U.S. flat-panel television market.

    Samsung shipped 2.6 million flat panel sets in the fourth quarter of 2010, up 41.5 percent from 1.8 million in the third quarter and a 22.8 percent rise from 2.1 million in the fourth quarter of 2009.

    However, because Samsung led Vizio in flat-panel television shipments during the first three quarters of 2010, it maintained leadership for the year as a whole. Samsung accounted for 20.1 percent of U.S. flat-panel shipments in 2010, compared to 18.4 percent for Vizio.
     

  • 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.

  • NPD: 75% of US iPhone and iPod Touch users Download Apps and Games

    The NPD’s "Entertainment Trends in America" update reveals three quarters of iPhone and iPod touch users are connecting to the Web to download entertainment content and apps.

    According to the latest update to the NPD’s tracking survey, 16 percent of Americans age 13 or older are using devices other than their home computers to download software applications, music, video, and other entertainment content from the Web.

    Based on NPD’s entertainment market research, 75 percent of iPhone and iPod Touch users are connecting to the Web to download entertainment content and apps, compared to 19 percent of game console users and 17 percent of Blu-ray Disc set-top product users.

    “It’s not surprising that Apple users are ahead of others when it comes to downloading Web-based content, given the breadth of the company’s app catalog and the head start iTunes had selling music for the iPod,” said Russ Crupnick, entertainment industry analyst for NPD.

    “Like other groups of early adopters, consumers downloading entertainment content are mostly younger and male; however, as app stores expand beyond Apple, as connected devices become more commonplace, and as connectivity is simplified we expect to see more activity on other devices and platforms,” he added.

    According to the report, among iPhone and iPod Touch users who downloaded content, free apps were the most popular download category, followed by video-game apps, and music downloads.

    Among consumers who connected via game consoles, game add-ons were far and away the most popular category, followed by purchased downloads of entire games, and movie rentals.

    In addition, one-third of Blu-ray Disc consumers who actually connected via their BD reported downloading a movie rental.

    “Music now competes with games and other apps for share of device, share of wallet, and share of time,” Crupnick said.

    He says that entertainment companies need to start to thinking of apps in broader terms, not only as a way of garnering direct sales from downloads, but also as a pathway to paying for additional entertainment content.

    “For example, an app that reviews movies could also be a direct channel for purchasing DVDs, BDs, or digital forms of video,” Crupnic concluded.