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Cheaper LCD Panels Means More TV Sales

14 Mar, 2007 By: John Latchem

Price reductions, as well as an accelerated shift to high-definition formats, are boosting 2007 sales forecasts of the liquid crystal display panels used in making widescreen TV sets, according to iSuppli Corp.

The research firm predicts shipments of 75.2 LCD panels in 2007, up 42.7% from the 52.7 million screens shipped in 2006. This represents a 3% uptick in the forecast from iSuppli's earlier projection, made in fourth-quarter 2006.

The growth lags behind the jump from 2005 to 2006, when shipments increased by 95.8%.

“This strong growth in 2007 will pave the way for LCD-TV panel shipments to exceed 100 million units in 2008, and then grow to 171.6 million units by 2011,” said Sweta Dash, director of LCD and projection research at iSuppli. “By that time, LCD-TVs will dominate the market, accounting for 65% of all television unit shipments worldwide.”

Prices for large-sized LCD panels used for televisions are on the decline. The price of a 32-inch LCD-TV panel is expected to fall by 17% in the first half of 2007, compared to the fourth quarter of 2006.

Shipments of panels smaller than 29 inches are expected to remain flat over the next five years, with significant growth in the number of TVs above 35 inches. In 2011, iSuppli forecasts shipments of 75.8 million HDTVs of 40 inches or more, compared to 18.6 million in 2007.

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