Report: LCD TV Shipments Rose 2%, Revenue Fell 7% in 200922 Feb, 2010 By: Erik Gruenwedel
Steep price discounts for LCD flat-panel televisions helped manufacturers increase overall (including plasma) unit shipments 2% to 211 million in 2009, despite the emergence of a major economic recession at the end of 2008, according to a new report.
Indeed, consumer spending concerns resulted in the average selling price for TVs to drop 7%, including 24% for LCD units, the largest annual price drop since Austin, Texas-based DisplaySearch began tracking the TV market.
LCD, the most popular TV screen sold, generated 146 million units shipped, up 37% from 2008. The fourth quarter of 2009 proved a significant driver, with total TV unit shipments increasing year-over-year 17%, and 50% for LCD.
With 100% year-over-year TV shipment growth in China, flat-panel models for the first time represented 75% of all units shipped and 90% of overall revenue, according to the report.
Interestingly, unit growth in North America revolved around 40-inch screen sizes and smaller, despite the introduction of advanced new TV technologies to larger screen sizes, such as LED-backlit LCD TVs and Internet connectivity.
“The better-than-expected 2009 results clearly demonstrate that consumers still have a strong desire to purchase flat-panel TVs, but at the same time are willing to shift their buying behavior to match their budget in a recession-plagued year,” said Paul Gagnon, director of North America TV market research for DisplaySearch. “We saw a lot more compromise on size and features in 2009, with a greater number of consumers perhaps opting to upgrade smaller secondary sets and postpone getting a larger living room set than we would have seen in a normal economy.”