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North American TV Shipments Continue to Decline

31 Aug, 2010 By: Erik Gruenwedel

Shipments of televisions in North America fell 3% in the second quarter despite a 26% surge in global unit shipments, according to a new report.

Santa Clara, Calif.-based DisplaySearch said strong consumer demand from the recent month-long World Cup soccer competition helped spur 70% year-over-year quarterly TV unit shipment increases in Latin America and less so in Europe. Japan posted a 56% year-over-gain due in large part to government subsidies encouraging consumers to trade-in older TVs for more energy-efficient models.

“The results for TV shipments in Q2 were definitely mixed, as not all regions benefited from external stimuli like the World Cup or digital TV transitions in regions such as Europe,” said Paul Gagnon, director of North America TV market research for DisplaySearch.

Indeed, a build-up of inventory, combined with a weaker euro, will likely lead to a correction in the third quarter and heading into the holiday fourth quarter, according to Gagnon. In addition, with consumer electronics manufacturers adding increased technology to TVs, including access to 3D content, video-on-demand movies, music and related online content, unit prices are increasing.

“As consumers still seem reluctant to spend, this hard shift in [technology] mix could be contributing to slower growth in markets like North America,” Gagnon said.

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