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NPD: China, Asia Pacific Offer Lifeline to LCD TV Market

3 Sep, 2013 By: Erik Gruenwedel

Samsung maintain market share lead in flat-panel shipments

Total worldwide TV shipments were down 3% in the second quarter (ended June 30) compared with the same period last year, though LCD TV shipments managed to grow 4%, according to new data from NPD DisplaySearch.

The trend in total shipments, while still negative, is showing some improvement from last year, with LCD TV shipments posting slight growth during the past two quarters. China continues to be a catalyst for global LCD TV shipment growth — though Q2 growth was likely the result of industry incentives.

“Due to the fact that the government subsidy for energy-efficient electronics expired in May, Chinese TV makers shipped a large quantity of LCD TVs in order to take advantage of the subsidy,” Paul Gagnon, director of global TV research for NPD DisplaySearch, said in a statement.

As a result of the end of the subsidy, China’s LCD TV shipments grew 29% in the quarter, during what is normally a slower seasonal period. Excluding China, global LCD TV shipments fell 3.5%, and declined almost 14% in developed regions.

Western Europe, in particular, experienced a dramatic slowdown in growth, with total TV shipments falling 21%, due to poor consumer demand and continued economic headwinds. North America also experienced a sharp drop in TV shipments during Q2, with overall units falling 12%, as retail inventory pressure suppressed shipments of new models.

Shipments of TVs with the latest new technologies, such as 4K and OLED TV, also started to pick up in the quarter, although both remained relatively small compared to the TV market as a whole.

4K TV shipments grew to 129K in Q2, with the majority of those going to China. At the same time, OLED TV shipments, all from LGE as of the second quarter, increased from 101K in Q1 to 208K in Q2.

Korean TV Brands Drive Industry

Among the top 10 brands, only the Chinese brands grew revenue in the quarter compared with last year. Samsung remained the leading global flat-panel TV brand (ahead of compatriot LG) with more than a 26% share of revenue (a 1% drop from Q1) despite a revenue decline of 19%.

General market weakness in North America and Europe was a major contributing factor to the decline in revenue, as those two regions account for 45% of Samsung’s global TV revenue.

LG was the second leading brand with almost no change to its flat-panel TV revenue share. Sony’s share improved significantly in Q2, thanks largely to a growing revenue contribution from China and other emerging markets and strong growth for its average size and share of 4K, according to NPD.


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