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Follow UsUSA: Vizio Inc. in the third quarter managed to stave off a strong market-share advance by Samsung Electronics Co. Ltd. to maintain its leadership in the North American LCD-TV market for the second quarter in a row, according to iSuppli Corp.
California-based Vizio accounted for 13 percent of North American LCD-TV unit shipments in the third quarter, down slightly from 13.7 percent in the second quarter. This gave Vizio a 0.2 percentage point lead compared to Samsung of South Korea, down from 2.9 percentage points in the second quarter. Samsung came on strong in the third quarter, with its share rising to 12.8 percent, up from 10.8 percent in the second quarter.
“Vizio continues to succeed based on its combination of low-cost products and high-profile sales channels,” said Riddhi Patel, principal analyst, television systems for iSuppli. “The addition of a prominent sales campaign has helped Vizio to establish itself firmly in the awareness of North American consumers. “Meanwhile, Samsung’s strong rise in sales was due to new model introductions in preparation for the upcoming holiday season,” Patel added.
The once unheard-of Vizio surged to the top of the North American LCD-TV rankings in the second quarter, passing by well-known brand names, including Samsung, Philips, Sharp and Sony to take the top spot. However, the competition is striking back, with all the other Top-6 brands increasing their market share, while Vizio’s declined.
The other brands have increased their presence and promotions since Vizio’s wake up call in the second quarter. In order to support the anticipated sales, the inventory has risen to the five- to seven-week level for most major brands and thus, the boost in shipments. Vizio still maintains three to four weeks of inventory at its retail channels.
This level of competition will only intensify as brands battle for control of the marquee North American LCD-TV market. The fourth quarter of 2007 is anticipated to be a strong sales period for North America because it is the peak shopping season annually and the best deals for the year are available during the period.
Furthermore, due to the softness of the US economy, OEMs are likely to offer additional discounts to promote their brands. This is all good news for consumers.