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IHS: Domestic TV Sales Revenue to Remain Flat in 2013

9 Jul, 2013 By: Erik Gruenwedel

Sales of larger screens at higher price points offset overall unit declines

Despite a significant decline in unit shipments, revenue for the U.S. television market is expected to remain flat in 2013, compared with 2012 as larger, higher-priced sets account for an expanded portion of sales, according to new data from research firm IHS.

Domestic TV sales will generate about $28.2 billion this year compared with $28.1 billion in 2012. Shipments are projected to drop 4% to 36 million units, down from 37.5 million units in 2012.

El Segundo, Calif.-based IHS said the revenue projection is underscored by an increase in the average selling price of all TVs, which includes an expected 5% increase to $783 from $749 last year.

“With the flat-panel-replacement wave fading further into history, the U.S. television market is undergoing a long-term slowdown in unit shipments,” said Veronica Thayer, analyst for consumer electronics and technology at IHS. “However, market revenue in 2012 and 2013 is expected to hold steady as shipments of larger-sized, more feature-rich and higher priced sets continue to increase.”

Indeed, shipments of liquid-crystal display (LCD) televisions sized 55- to 59-inches are expected to surpass those in the 45- to 49-inch category in 2013 for the first time ever this year.

The Big Picture

LCD TVs in the 55- to 59-inch size range are expected to account for 10.2% of U.S. television shipments in 2013, up from 9.6% in 2012. By comparison, sets ranging from 45- to 49-inches will decline to 8.3% of the market, down from 11.7%. By 2018, the 55- to 59-inch segment will represent 13% of the total domestic LCD TV market.

Meanwhile, shipments of 60-inch and larger LCD TVs this year will make up 9.6% of the market, up from 6.6% in 2012. This trend is expected to continue, with the shipment of such sets climbing to represent 12% of the market in 2018. In terms of revenue, growth will be even bigger, increasing to 35% in 2018, up from 18% in 2012.

LED Balloons

Sets using light-emitting diode (LED) backlighting technology in 2013 are forecast to increase to 28.9 million units, accounting for a total of 84% of the U.S. LCD TV market. This is up 48% from a total of 19.4 million LED-backlit TVs in 2012.

Meanwhile, the U.S. market for older cold-cathode fluorescent lamp (CCFL) backlit sets is in rapid decline, with share for such TVs anticipated to drop to nearly zero percent in 2016.

“LED TVs have been a big consumer hit, marketed on the basis of being eco-friendly and with better image quality,” Thayer said. “Indeed, the price differential between CCFL- and LED-backlit sets in smaller sizes has dwindled down.”


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