Plasma panel shipments fell 14 percent quarter to quarter and 1 percent year to year, to 2.3 million panels. DisplaySearch called it "the lowest result since the third quarter of 2005." At the same time mass market retailers are set to cut back floor space for plasma screens in favour of LCD TVs.
"Yes we will stock plasma but it will be a significantly smaller volume than in the past. And the models we stock will have to have a good margin for us to range it," said one mass market retailer.
"Plasma panel suppliers' aggregate survey results indicated that they were expecting flat results in the first quarter of 2007 after a weak fourth quarter in 2006, so the 14 percent decline was disappointing," DisplaySearch stated.
With the plasma panel surplus widening significantly, blended average selling prices fell 13 percent quarter to quarter and 27 percent year to year to US$582, a new low, despite steady gains in average size.
"With units and selling prices down, revenues plummeted 26 percent quarter to quarter and 28 percent year to year to $1.3 billion, the lowest value since the second quarter of 2005," according to the analyst's report.
DisplaySearch attributed the decline to a loss of share to LCDs, particularly 1080p LCDs, at 37 inches and larger sizes.
DisplaySearch said that LCD TV panels also experienced a larger than expected decline in the first quarter, down 9 percent from the same quarter in 2006.
This resulted from strong demand in the fourth quarter of 2006, which drew sales that ordinarily would have come in the following quarter.
