LCD TVs have taken over the world. Market research firm DisplaySearch estimates in a new report that of the 205 million total TVs shipped in 2009, 140.5 million, or 69 percent, were LCD TVs (the rest were plasma and CRTs). In 2010, that percentage is forecast to rise to 78 percent for LCD TVs, when total shipments will rise to 218 million.
Total TV shipments have actually been on the decline since mid-2008 as demand for older CRT TVs plummeted. Only in the third quarter did the increase in shipments of LCD TVs make up for the decline in other kinds of TVs. For the year as a whole, DisplaySearch still expects a 1 percent decline in shipments in 2009, followed by a 6 percent increase in 2010.
Worldwide TV revenues fell an estimated 10 percent to $101 billion, from $112 billion in 2008. But revenues are expected to rise in the first quarter of 2010 for the first time in six quarters.
As LCD TVs take over, the extreme price erosion they go through puts a lot of downward pressure on the industry’s revenues. For instance, the average price of LCD TVs in 2009 is expected to see a 24 percent decline, which is counterbalanced by the increase in demand. But after all is said and done, LCD TV revenues are only expected to rise 1 percent in 2009.
Total TV shipments in Q3’09 were up Y/Y on a unit basis for the first time in a year, and DisplaySearch now expects that global TV revenues will rise Y/Y in Q1’10—the first time in 6 quarters. As shown in the latest DisplaySearch Advanced Quarterly Global TV Shipment and Forecast Report, total TV shipments will rise from 205 million units in 2009 to 218 million units in 2010, a 6% increase following 2009’s 1% shipment decline.
As flat-panel TVs dip below $500, that triggers a whole new surge in demand both in the U.S. and abroad. Much of the growth in TV demand is actually coming from China. TVs have always been a tough business, and LCD TVs turn up the volume on the commodity aspects of the business. But there are always new advances around the corner such as LED and “3D” TVs which will keep prices up at the high end.
|LCD TV shipments||141 million||171 million|
|Total TV shipments||205 million||218 million|
|Total TV revenues||$101 billion||$?|