DisplaySearch Reports Plasma Panel Shipments Rebound In Q3'07 To Establish New Record High

October 25, 2007

After declining vs. the prior year in each of the first quarters of 2007, plasma panel shipments rebounded in Q3'07, rising 9% Y/Y and 33% Q/Q to a new record high of 3.1M panels according to the DisplaySearch Quarterly Plasma Module and TV Shipment and Forecast Report. There were numerous reasons for the growth in addition to falling prices including: Increased availability of 1080p panels whose shipments rose 100% Q/Q and 1030% Y/Y in Q3'07. 1080p panels reached 11% of Q3'07 plasma panel unit volume and 21% of plasma panel revenues. Each 1080p plasma panel gained share vs. the prior quarter. Continued share gains by larger sizes with 50" and larger plasma panels rising 37% Q/Q and 45% Y/Y to account for 32% of units and 50% of revenues. Increased cost competitiveness vs. LCDs at 42" 720p with prices for plasma panels, optical filters and power supplies now around 20% below similar LCD offerings. Looser supply relative to LCDs which are experiencing tightness through 42". LGE's 32" introduction, which surged to 5% of the market in its second quarter. Looking forward, plasma panel suppliers are expecting another record quarter in Q4'07 at 4.5M panels led by 32", 37", 42" 1080p and 50" 1080p--all with at least 50% Q/Q growth. Despite the strong unit growth, revenues were down 31% Y/Y while rising 20% Q/Q in Q3'07 to $1.4B as average prices continued to fall rapidly. In fact, blended plasma panel prices fell at double-digit rates for the third consecutive quarter, down 10% Q/Q and a record 37% Y/Y to $456. The rise of 32" panels put additional pressure on blended panel prices. By supplier, Matsushita remained #1 with a 33% share as shown in Table 1 and shipped at least 1.0M panels for the second time. Matsushita accounted for 77% of the 1080p unit volume and led in all 1080p categories. Samsung SDI remained #2 and led at 42" HD and 50" HD and took share. LGE remained #3, led at 32", 42" ED and 60"+ HD and also took share and enjoyed the highest Q/Q growth. Pioneer also took share as it launched its high performance Kuro panels. All suppliers enjoyed double-digit Q/Q growth except for Hitachi, which rose 7% Q/Q and also has the smallest emphasis on 1080p accounting for less than 1% of the Q3'07 1080p market. On a Y/Y basis, only Matsushita and Samsung SDI enjoyed growth of the top five due to their significant large size and 1080p emphasis, strong in-house TV brands and faster capacity growth than their competitors. For detailed PDP module shipments, PDP fab activity, PDP supply/demand, PDP TV shipments by brand and region and rolling 16-quarter plasma shipment, cost and pricing forecasts, please see the latest Quarterly PDP Module and TV Shipment and Forecast Report. For information on any DisplaySearch report, contact Arie Braun for additional information at (512) 687-1505, or arie@displaysearch.com or contact your regional DisplaySearch office in China, Europe, Japan, Korea or Taiwan.

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