Sony Dominates Q4'05 Microdisplay Rear Projection TV Market: 1080p Share Jumps from 7% to 15%

March 6, 2006

DisplaySearch, the worldwide leader in display market research and consulting and part of The NPD Group, has released Q4'05 worldwide microdisplay rear projection TV (MD RPTV) shipments and revenues by brand, region, size and resolution. Shipments for 18 different brands are identified in the report. Sony accounted for more than one out of every two MD RPTVs sold in Q4'05, earning a 54% share, up from 32% on 153% Q/Q and 113% Y/Y growth as shown in Table 1. It enjoyed at least a 53% share in each region and earned at least 60% Q/Q growth in each region. Sony gained share at the expense of all major players except JVC and Hitachi. By size and resolution, Sony led at 40"-44", 50"-54" 720p and 1080p, 55"-59" 720p, 60"+ 720p and 60"+ 1080p. The only size/resolution categories not led by Sony were 45"-49" 720p led by Toshiba and 55"-59" 1080p led by JVC. Table 1: Q3'05 ˆ Q4'05 MD RPTV Share and Growth by Supplier Unit Share Brand Q3'05 Q4'05 Sony 31.6% 53.8% Samsung 21.1% 13.6% Toshiba 8.7% 6.8% JVC 5.9% 6.3% Mitsubishi 13.0% 5.5% Others 19.7% 14.0% Total 100.0% 100.0% Excluding Sony, MD RPTVs would have grown just 1% Q/Q. With Sony's MD RPTV shipments included, MD RPTVs shipments jumped 49% Q/Q and 52% Y/Y to a record 946K units. MD RPTV revenues rose 49% Q/Q and 30% Y/Y to $2.3B with ASPs flat Q/Q and down 14% Y/Y to $2419. In Q4'05, MD RPTVs accounted for 64% of the total RPTV market on a unit basis, up from 57%, and 82% of the RPTV market on a revenue basis. For the year, MD RPTV shipments rose 53% to 2.5M units with revenues rising 28% to $6.1B. By MD RPTV technology, LCD RPTVs and LCOS RPTVs each earned significant growth in Q4'05 on a sell-in basis while DLP RPTVs contracted after rapid Q3'05 growth. As a result, LCD RPTVs regained the top MD RPTV position with its share rising from 46% to 54%. LCOS RPTVs enjoyed dramatic growth due to the successful launch of Sony's SXRD products in North America as well as the continued growth of JVC's D-ILA LCOS RPTVs. LCOS RPTV shipments rose 236% Q/Q and 405% Y/Y in Q4'05, earning a 16% share of the MD RPTV market, up from 7% in Q3'05. Consumers embraced the benefits of higher resolution MD RPTVs in Q4'05 with the 1080p share rising from 7% to 15% on 222% Q/Q growth. DLP and LCOS RPTVs experienced significant growth at 1080p resolution with the 1080p share of LCOS shipments growing from 13% to 64% and the 1080p share of DLP RPTV shipments rising from 13% to 18%. In North America, the 1080p share of MD RPTVs rose from 8% in Q3'05 to 18% in Q4'05. North America accounted for 99% of the 1080p MD RPTVs sold in Q4'05 due to the plethora of broadcasted 1080i content which looks better on a 1080p than a 720p set and early adopters preparing for the availability of 1080p broadcasted and packaged content. By region: North America remained the dominant region for MD RPTVs with an 87% share, down from 88%, on 47% Q/Q and 54% Y/Y growth to over 800K units. On a revenue basis, North America's share was slightly higher due to the adoption of more expensive LCOS and 1080p sets. In Europe, MD RPTVs earned rapid growth, up 166% Q/Q and 80% Y/Y, boosting its share of the MD RPTV market from 3% to 5%. Most of this growth was earned by Sony's LCD RPTVs which grew 330% Q/Q. Sony captured a 70% share in Q4'05. Most of this growth was at 50", with 50"-54" overtaking MD RPTVs also enjoyed impressive growth in Japan, rising 154% Q/Q. However, the Japanese market only accounted for a 1.3% unit share, up from 0.7%. MD RPTVs continue to struggle in China despite the significant presence of CRT RPTVs. China was the only region to experience a sequential decline in Q4'05 with shipments down 11% Q/Q and 24% Y/Y. As a result, its unit share fell from 3% to 2%. ROW remained the second largest MD RPTV market with a 5% share, down from 6%, on 39% Q/Q and 19% Y/Y growth. By size worldwide: 40"-44" MD RPTVs rose from 20% - 23% of the MD RPTV market on rapid growth in North America in the price sensitive holiday season. 40"-44" MD RPTV shipments were up 71% despite increased competition from LCD and PDP TVs. Comparing all TV technologies at 40"-44", MD RPTVs maintained an 8% share. 45"-49" shipments rose 19%, but its share fell to 4%. 50"-54" remained dominant with a 42% share, up slightly from 41% on 50% growth. The 1080p share of the 50"-54" market rose from 9% in Q3'05 to 16% in Q4'05. 55"-59" rose from an 11% to a 12% share in Q4'05 on 57% growth with the 1080p share rising from 5% to 9%. 60"+ shipments rose 32% with its share falling from 22% to 19%. The 1080p share surged, rising from 12% to 41%. For more information, data and analysis on the MD RPTV market outlook, DisplaySearch will hold its 8th Annual DisplaySearch US FPD Conference in San Diego from March 21-23 which will bring together leading MD RPTV brands and regional market analysts. Dr. Randall Waynick, Senior Vice President from Sony's Home Products Division, will discuss the market outlook for MD RPTVs in his keynote talk. Also expected to address the MD RPTV market outlook is Panasonic Corp. of North America CEO and Chairman Yoshihiko Yamada, Vincent Sollitto, CEO of LCOS imager supplier and MD RPTV brand Syntax Brillian, LGE Director Time Alessi and industry and market analysts from DisplaySearch, The NPD Group and Meko.

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