DisplaySearch Reports Q2'07 Flat Panel TV Share Surges Worldwide On Rapid LCD Growth

Samsung Still #1 in TV Units and Revenues

August 29, 2007

DisplaySearch, the worldwide leader in display market research and consulting, reported in its latest Quarterly Global TV Shipment and Forecast Report that flat panel (LCD and plasma) TV penetration gained ground in each of the eight regions covered. Flat panel TV shipments accounted for more than 75% of total TV shipments in the top three regions: Japan, Western Europe and North America. Worldwide, flat panel TV shipments rose from 37% in Q1'07 to 43% in Q2'07 as prices vs. conventional CRT sets continued to narrow. Sequential growth was up more than 20% Q/Q in North America, Middle East and Africa, Asia Pacific, and Latin America. On a revenue basis, penetration is now above 50% in all regions, except for Latin America, with the worldwide flat panel TV revenue share rising from 74% to 79%. Global TV shipments were up 1% Y/Y while falling 6% Q/Q on seasonal weakness to 43 million units. Despite the Y/Y unit growth, global TV revenues were down 4% Y/Y and 3% Q/Q to $23 billion with ASPs down 5% Y/Y while rising 3% Q/Q to $528 -- representing the first quarter that revenues and ASPs were down on a Y/Y basis in 2.5 years. DisplaySearch Founder and President Ross Young noted, "The Y/Y decline in TV revenues and ASPs in Q2'07 can be attributed to rapid flat panel and MD-RPTV price erosion and unit weakness in regions where flat panel penetration is high such as Europe and Japan. In addition, Q2'07 is one year after strong sell-in from the 2006 World Cup which emphasized larger sizes while Q2'07 was marked by weakness at larger sizes due to more traditional buying patterns. For example, the 50"+ category declined 14% Q/Q in Q2'07 and 52" LCD TVs were flat Q/Q. Nonetheless, as flat panel TVs begin to saturate the TV market and prices continue to fall at a healthy rate, Y/Y revenue growth will be more difficult to achieve."

Read More: