DisplaySearch: LCD Shipments to Grow as Margins Drop29 Sep, 2009 By: Chris Tribbey
Year-over-year worldwide LCD TV shipments should grow nearly 25%, thanks to increased demand in North America and China, according to DisplaySearch, the TV research arm of the NPD Group.
Roughly 130 million total LCD TV units will shipped for the year, DisplaySearch estimates. A large majority of those units are less than 40 inches, the firm reported.
“The transition from [Cathode ray tube]-based TVs to flat-panel TVs is largely complete in developed regions worldwide, like North America, Western Europe and Japan,” said Hisakazu Torii, VP of TV research at DisplaySearch. “Now the transition to flat is accelerating in emerging markets like China, and we are seeing sales of CRT TVs fall faster than flat-panel TVs can grow, mostly due to supply constraints in LCD TV.”
While LCD TV shipments are up, retail prices are sharply down, as much as 22% by the end of 2009, compared to 2008, DisplaySearch reported. With the manufacturing price of LCDs rising, total revenue for consumer electronics companies is expected to drop 3% this year.
“The 2009 U.S. holiday season will be a critical measure of how confident consumers are with the economic recovery, and how far brands and retailers are willing to go in order to drive store traffic,” said Paul Gagnon, director of North America TV research for DisplaySearch. “We expect unit shipments to outpace the weak results from a year ago, but it will take aggressive promotional prices from major brands and retailers alike to bring consumers into stores, especially for larger-screen sizes, something that is even more challenging considering key costs have drifted higher in recent months.”