Despite slow sales in Australia, global LCD TV shipments are set to surge to 130 million units according to research Company DisplaySearch.they are also forecasting annual growth for the category of 24 percent.
In Australia vendors are reporting slow HD TV and LCD sales for August and September with some vendors claiming that August was a “shocker”
The falling prices of LCD TV’s will have a negative impact on profit margins for vendors but could lead to price cuts in the future for consumers.
“The upcoming holiday season will be a critical measure of how confident consumers are with the economic recovery, and how far brands and retailers are willing to go in order to drive store traffic,” says Paul Gagnon, director of TV research for DisplaySearch.
“We expect unit shipments to outpace the weak results from a year ago, but it will take aggressive promotional prices from major brands and retailers alike to bring consumers into stores, especially for larger screen sizes, something that is even more challenging considering key costs have drifted higher in recent months.”
The forecast for LCD TV shipments has been increased from 31 million units to 34 million, with increased volume coming from screens smaller than 40-inches. Shipment volume of TVs smaller than 40-inches is expected to grow 23 percent in 2009, which is similar to 2008 growth. The large-screen TV market (40-inches-plus) is expected to grow 25 percent in 2009, which is about half the pace of 2008 growth.
“This is a clear result of the lower spending power by consumers worldwide in this recession, pushing them to look at more modest screen sizes when choosing a new LCD TV,” says Gagnon. “However, we think this is a temporary effect. As the world emerges from the recession in 2010 and beyond, growth rates for large screen sizes will again outpace smaller sizes by a more substantial margin.”
According to DisplaySearch, LCD TVs with 100 frame rates will account for 31 percent of worldwide LCD TV revenues, while 200 Hz models will account for 5 percent. By 2013, DisplaySearch says, 100 Hz will account for 32 percent of LCD TV revenues, while 200 Hz will account for nearly 22 percent.