Global TV shipments up 11pc Y/Y in Q2-08

Global TV shipments up 11pc Y/Y in Q2-08

Strong growth in North America, and among flat panel technologies

Friday, August 22, 2008

AUSTIN, USA: Global TV shipments improved a robust 11 percent Y/Y to 47.5M units in Q2’08, which was up 3 percent Q/Q, with better than expected shipment growth in North America according to the latest figures from DisplaySearch’s Quarterly Global TV Shipment and Forecast Report.

LCD TV was once again a hot technology, rising 47 percent Y/Y to 23.7M units. Plasma TV exhibited even stronger growth, rising 52 percent Y/Y to 3.4M units, thanks largely to the reintroduction of 32” into the North American market and wider availability of 1080p models.

North America enjoyed particularly strong growth in Q2 with total TV shipments surging 28 percent Y/Y after just 5 percent Y/Y growth in Q1’08 and negative growth during most of 2007. The strong shipments in North America reflect introduction of new, lower-cost, flat panel TV models to the US market by top-tier brands in the latter part of the quarter and a consumer that was very receptive to these lower price points.

Globally, flat panel TV share rose from 52 percent in Q1’08 to 57 percent in Q2’08 as LCD regained unit share lead from CRT, climbing to nearly 50 percent of all TV shipments worldwide.

Some other highlights from Q1’08 include:

* LCD TV took share from other technologies in all regions, except Japan, rising to a record 49.8 percent unit share. Developed regions like North America, Japan and Western Europe already have very high levels of LCD TV share at 80 percent, 85 percent and 87 percent, respectively. Developing regions are continuing to see a quickening transition from CRT to LCD, mostly at smaller screen sizes, as flat panel TV prices fall more rapidly. Currently, LCD TV accounts for 28 percent of TV shipments in developing regions. Samsung expanded its leading global LCD TV shipment share to a record 20.4 percent with Sony #2 at 13 percent and LGE #3 at 10 percent.

* Plasma TV shipments during the quarter got a lift from new size and resolution categories, such as 32” HD, introduced by Vizio to North America during Q2’08, and 46” 1080p from Panasonic. Both sizes did not exist a year earlier. All regions enjoyed Y/Y Plasma TV shipment growth, led by China, where units rose 285 percent Y/Y. Plasma’s share of the overall TV market reached a record 7.1 percent. Panasonic remained the leading PDP TV brand globally, with 32.9 percent unit share, followed by Samsung at 21.1 percent and LGE at 17.4 percent.

* The 32” shipments climbed to the second highest level ever at just over 9M units, mostly in the form of LCD TVs, up 41 percent Y/Y. This is the strongest growth in more than year as LCD panel supply increased on better fab utilization, causing panel prices to decline more than expected. Other screen sizes with stronger than 40% Y/Y growth include 15-19”, 22-24”, 40-44”, 45-49” and 50-54”.

A review of global TV shipment performance by technology can be seen in Table 1.

Table 1: Q2‘08 Worldwide TV Shipments by Technology (000s)
Source: DisplaySearch

On a brand basis, Samsung was the global brand share leader in revenues for the 10th straight quarter, expanding their share to a record 22.8 percent, more than 10 share points higher than #2 Sony, on robust 52 percent Y/Y growth.

Samsung also had the top ranking on a unit basis and led both LCD and MD RPTV on a unit and revenue basis. Sony was #2 on a revenue basis for the fourth straight quarter with very strong Y/Y growth, but declining in share slightly to 12.5 percent. LGE remained #3 with its share nearly unchanged at 11.5 percent, and they led in global CRT shipments.

A complete review of the top five brands can be seen in Table 2.

Table 2: Q2‘08 Worldwide TV Brand Rankings by Revenue Share