Flat Panel TV Margins Tight As Sales Fall

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Retailers are set to suffer margin declines from flat panel TV’s after global TV sales fell 12% Y/Y to $23.7 billion while shipments declined 8% Y/Y to 44.6 million units according to the latest DisplaySearch Quarterly Global TV Shipment Forecast Report.

The star performer has been LCD TV sales which according to DisplaySearch posted “remarkably strong unit growth”.

Margins have fallen as much as 22%

Globally, flat panel TV share jumped from 68% in Q1’09 to 74% in Q2’09 as LCD TV price erosion continued at the same annual pace as Q1’09, falling 22% Y/Y on average. LCD TV market share increased from 62% to 67%.

Despite tight supply conditions for LCD panels in Q2’09, LCD TV shipment growth managed to maintain the same pace as Q1’09, rising 27% Y/Y to 30 million units although revenues fell 1% Y/Y. Plasma market share increased about half a percent to 7%.

“LCD TV market growth remains impressive, gaining market share from incumbent technologies like CRT at a quickening pace despite higher prices and a tight supply situation in Q2’09” noted Paul Gagnon, Director of TV North America TV Market Research at DisplaySearch. “Advanced technologies like high frame-rate LCDs and 1080p resolutions also continued to increase in market share as the price premium narrows, even in these tough economic times.”

 

Display Search said that the big loser was Sony who in a space of 18 months has slid from #1 slot to #3 behind Samsung and LG. They have also witnessed a 13% year on year decline.

Table 2: Q2’09 Worldwide TV Brand Rankings by Revenue Share

Rank

Brand

Q1’09
Share

Q2’09
Share

Q/Q
Growth

Y/Y
Growth

1

Samsung

21.5%

23.0%

15%

-10%

2

LGE

13.4%

13.7%

9%

7%

3

Sony

13.1%

11.8%

-3%

-13%

4

Panasonic

6.1%

8.6%

52%

-8%

5

Sharp

7.1%

6.4%

-4%

-17%

 

Others

38.8%

36.6%

1%

-18%

 

Total

100.0%

100.0%

7%

-12%

Samsung remained the global brand share leader in revenues for the 14th straight quarter, rising to a record revenue share of 23.0% and also hitting a record unit share of 18.2%. LGE remained #2 after surpassing Sony in Q1’09, slightly increasing their revenue share to 13.7% with small share gains in both LCD and plasma. Sony held the #3 brand position worldwide in revenues, although losing a little more than a point of share.

Samsung reclaimed the top LCD slot while Panasonic was the #1 plasma manufacturers.

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