Global Sources
EE Times-India
Stay in touch with EE Times India
EE Times-India > Manufacturing/Packaging

LCD TV growth to slow in 2007

Posted: 02 Jan 2007     Print Version  Bookmark and Share

Keywords:LCD TV production  LCD panels  LCD panel  LCD TV  Philips 

Rapid price declines will slow LCD TV revenue growth in 2007, according to market research firm iSuppli Corp.

Worldwide LCD TV factory revenue will rise by 20 per cent this year, expanding to Rs.2,43,532 crore ($53.5 billion), up from Rs.2,03,474.40 crore ($44.7 billion) in 2006, according to iSuppli. This represents a 56 per cent point decrease in growth compared to 2006, when LCD TV revenue increased by 76 per cent, the firm said.

Global LCD-TV shipments will rise to 6.25 crore units in 2007, up 57 per cent from 3.97 crore in 2006, according to the firm. This 57 per cent growth would be down dramatically from 95 per cent growth in 2006, iSuppli said.

According to research firm, the projected slowdown is attributed to the large volume of LCD TVs, which makes it difficult to maintain dramatic growth on an annual basis.

"Regardless of the slowdown, the LCD TV market remains in a phase of explosive growth, mainly due to booming sales of large-sized sets," said Riddhi Patel, principal analyst for televisions systems at iSuppli. "Because consumer interest has accelerated and with commitments from panel makers and OEMs, LCD panel makers are increasing their support for the large-screen television market by upping their capacity at seventh-generation and more advanced fabs."

According to Patel, a key focus for LCD TV retailers and manufacturers in 2007 will be the proliferation of 40-inch and larger sizes, as the cost of these TVs declines and their availability increases. Unit shipments of 40-inch and larger LCD TV for this year will increase dramatically, iSuppli predicts. For LCD TVs in the 40-inch to 41-inch range, iSuppli forecasts manufacturers will ship 23 lakh units by the fourth quarter of 2007, up 60.3 per cent from 14 lakh in the fourth quarter (Q4) of 2006. For LCD-TVs in the 42-inch to 44-inch range, iSuppli forecasts shipments of 11 lakh units by 2007's Q4, up 87.7 per cent from 594,000 in Q4 of 2006.

Revenues for LCD TV manufacturers will continue to grow—despite declining average selling prices (ASPs), which have been falling quite rapidly over the past few quarters of 2006 and will persist through 2007, according to iSuppli.

The overall LCD TV ASP will decline at an average of 12.8 per cent from 2006 to 2010, with the most evident decreases in the 35-inch and larger market, iSuppli said. Overall LCD TV revenue will rise at a CAGR of 17.2 per cent during the same period, the research firm said.

"Premium LCD TV brands will benefit from sales increases due to these rapidly plunging prices," Patel said. "But value brands also stand to gain significantly."

Though Sharp Corp. continues to lead the LCD TV market worldwide, it has lost its dominance to Philips and Samsung in the North American market and now is ranked No. 3 in that market, according to iSuppli. OEMs like Philips, Samsung and Sony are aggressive in reacting to the market needs and changes as well as maintaining aggressive pricing when compared to Sharp, iSuppli reported.

- Dylan McGrath
EE Times

Comment on "LCD TV growth to slow in 2007"
*  You can enter [0] more charecters.
*Verify code:


Visit Asia Webinars to learn about the latest in technology and get practical design tips.


Go to top             Connect on Facebook      Follow us on Twitter      Follow us on Orkut

Back to Top