Global TV Shipments Decline for Second Straight Quarter

Tuesday, September 11th, 2012 

Demand for Larger Screens and Increasing Feature Mix Provide Optimism for the Industry

SANTA CLARA, California — Global TV shipments declined for the second straight quarter, falling 8% year over year in Q2’12, according to the NPD DisplaySearch Advanced Quarterly Global TV Shipment and Forecast Report. The decline in TV shipments started in Q4’11 and has continued in 2012, reflecting both worsening economic conditions worldwide and slower price erosion, which both affect consumer demand.

Japan has been the hardest hit, with Q2’12 shipments plunging 77 percent year over year to less than 1.4 million. In developed markets, TV shipments were down 23 percent year over year, while emerging market growth slowed to 3 percent from double-digit growth at the end of 2011. China, a strong driver of emerging market growth, rebounded from a Q1’12 decrease, growing 6 percent in the second quarter. Eastern Europe continued double-digit demand growth, but all the other emerging markets saw shipment levels fall from a year earlier.

“A sharp decline of demand in Japan and a correction in Europe following the analog broadcast shut-offs in 2010 and 2011 have significantly impacted the TV market and contributed to a decline in shipments,” noted Paul Gagnon, Director, North American TV Research for NPD DisplaySearch. “Emerging markets have also been affected by softer shipment growth recently, related to a rapid decline in demand for CRT TVs and to less price erosion in flat panels. Despite this, the growth in demand for larger screen sizes and the increasing feature mix is cause for optimism.”

LCD TV shipments were down year over year for the second quarter in a row, falling 2 percent, but demand for LCD TVs of 40″ and larger is strong, with second quarter shipments rising more than 15 percent year over year. Advanced features within the LCD TV market also showed improvement, as LED, high frame rate, and 3D all increased in share during Q2’12. Meanwhile, plasma TV shipments fell for the sixth straight quarter, down by more than 20 percent.

Table 1: Q2’12 Worldwide TV Shipments by Technology (000s)

             Q2'12       Q2'12     Q/Q     Y/Y 
Technology   Units  Unit Share  Growth  Growth
----------  ------  ----------  ------  ------
LCD TV      44,123       85.5%      2%     -2%
PDP TV       3,150        6.1%      6%    -26%
OLED TV          0        0.0%       -   -100%
CRT TV       4,347        8.4%    -15%    -36%
RPTV            15        0.0%    -40%    -38%
----------  ------  ----------  ------  ------
Total       51,635        100%    -32%     -8%

Source: NPD DisplaySearch Advanced Quarterly Global TV Shipment and Forecast Report

Samsung Global TV Revenue Share Rises to a Record Level, Japanese Brands’ Revenues Fall

Samsung’s global flat-panel TV revenue share reached a new high, growing to more than 28 percent and leading all other flat-panel TV makers by a significant margin. The top three Japanese brands–Sony, Panasonic, and Sharp–were severely impacted by the drop in demand in Japan, so each saw global flat-panel TV revenues decline more than 30% year over year. Globally, Chinese brands grew 14 percent year over year in the Q2’12, while Korean brands grew by 9 percent.

Table 2: Q2’12 Worldwide Flat Panel TV Brand Rankings by Revenue Share

                       Q1'12   Q2'12     Q/Q     Y/Y
Rank  Brand            Share   Share  Growth  Growth
----  --------------  ------  ------  ------  ------
1     Samsung          25.9%   28.5%     18%     18%
2     LG Electronics   14.6%   15.2%     12%      0%
3     Sony Corp.        9.4%    8.3%     -5%    -33%
4     Panasonic         5.3%    6.8%     38%    -32%
5     Sharp Corp.       6.5%    5.0%    -17%    -32%
 
      Other            38.3%   36.3%      2%     -3%
                      ------  ------  ------  ------
      Total           100.0%  100.0%      8%     -6%

Source: NPD DisplaySearch Advanced Quarterly Global TV Shipment and Forecast Report

The NPD DisplaySearch Advanced Quarterly Global TV Shipment and Forecast Report includes market intelligence regarding panel and TV shipments by region, brand, size, resolution, frame rate and backlight type for nearly 60 brands. It also presents rolling 16-quarter forecasts, TV cost/price forecasts, and design wins. For more information on this report, please contact Charles Camaroto at 1.888.436.7673 or 1.516.625.2452, e-mail contact(at)displaysearch(dot)com, or contact your regional NPD DisplaySearch office in China, Japan, Korea or Taiwan.