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IHS: U.S. TV Shipments Fell Nearly 10% in 2013

11 Feb, 2014 By: Erik Gruenwedel

The demand for new televisions in the United States dropped 10% in 2013 despite a last-minute rally during the holiday season, which failed to compensate for low domestic demand throughout the year, according to new data from IHS.

TV shipments declined to 34 million units, compared with 37.5 million units in 2012. Both liquid-crystal display (LCD) and plasma display panel (PDP) sets lost volume in 2013 from a year earlier. LCD shipments slid 6% to 31.9 million units, while PDP shipments plummeted 42% to 2.1 million.

“The TV market in the United States has reached a point of saturation following a period of huge growth in years past, especially as the flat-panel-TV craze set in,” Veronica Gonzalez-Thayer, analyst for TV systems at HIS, said in a statement. “As a result of the market’s maturity, and also because of lingering uncertainties in the economy, American consumers have been less eager to rush out and buy new replacement TV sets.”

From 2009 to 2011, the U.S. TV market continued to grow, with shipments of more than 38 million units annually. In 2012, shipment volume dropped below 37 million units, and shipments last year dipped below the 34 million mark for the first time in five years.

The decline in domestic TV shipments during 2013 saw a 12% decline in revenue to $23.5 billion — despite an increase in the shipments of large-sized flat-panel models with advanced features such as Internet connectivity and 1080p resolution could not offset the loss of shipments on the whole and a general 3% drop in average selling prices, according to IHS.

The first-quarter deficit was approximately 700,000 units, with the difference in shipment volume ballooning during the second quarter to nearly 1 million units. The third quarter saw a loss of 800,000 units compared with the same time in 2012, and the fourth quarter fell short as well by more than 1 million units.

While LCD shipments are forecast to be up in 2014, for the first time, active-matrix organic light-emitting-diode (AMOLED) TVs will be entering the U.S. market in greater volume. About 8,000 units are expected to ship, featuring super-thin profiles and improved contrast ratios — and steep pricing.


About the Author: Erik Gruenwedel

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