DisplaySearch, the worldwide leader in display market research and consulting, reported in its latest Quarterly Global TV Shipment and Forecast Report that TV units rose 18% Q/Q and 11% Y/Y to 50.6 million while revenues rose 17% Q/Q and 10% Y/Y to $26.3 billion in Q3’07.
The strong growth can be attributed to:
* Rapid growth in Europe. Because the European TV market stalled in Q3’06 as sell-through during the World Cup disappointed and resulted in a 19% Q/Q decline in revenues, TV revenues were bound to surge on a Y/Y basis. In fact, Q3’07 European TV revenues jumped 25% Y/Y with units up 29%. Sequential growth was particularly impressive in Eastern Europe as flat panel TVs rose from 37% of Q2’07 shipments to 50% of Q3’07 shipments.
* Healthy growth in the developing world.
TV revenues for Asia Pacific, Latin America and Middle East & Africa were up a combined 19% Y/Y with units up 11%. While the World Cup contributed to weakness in Q3’06 in these regions, rising income levels, falling TV prices and increased flat panel TV penetration also contributed to their rapid growth. The combined flat panel share for these regions doubled from 8% of Q3’06 shipments to 16% of Q3’07 shipments. China also had a strong quarter and was the largest TV market on a unit basis for the second time over the past three quarters. China experienced 9% Y/Y unit growth and 4% Y/Y revenue growth.
* Enormous growth in 1080p TVs.
1080p TVs rose 70% Q/Q and 357% Y/Y to 3.4M. Each technology offering 1080p TVs enjoyed tremendous 1080p unit growth with 1080p LCD TVs up 69% Q/Q, 1080p plasma TVs up 101% Q/Q and 1080p microdisplays up 57% Q/Q. As a percentage of 40" and larger TVs, 1080p sets rose from 29% to 39% of units and 40% to 51% of revenues led by Japan and North America where 1080p sets accounted for a majority of 40" and larger units. The growth in 1080p sets despite their higher prices helped minimize blended ASP declines for all TVs which were down just 1% Y/Y to $519.
* Continued gains by flat panel TVs and larger sizes. Flat panel TV shipments were up 75% Y/Y with LCDs up 86% and plasma growing 21%. Flat panel TVs accounted for more than 80% of Q3’07 shipments in Japan, Western Europe and North America and 45% worldwide, up from 29% in Q3’06. Flat panel TV revenues also continued to take share, rising 21% Q/Q and 29% Y/Y to an 81% share, up from 69% in Q3’06. The average TV size also continued to grow, rising from 25.6" in Q3’06 to 27.4" in Q3’07 with 40"- 47" TV shipments and revenues rising the fastest and now accounting for nearly 1/3 of TV revenues.
By technology:
* LCD TV shipments accelerated in Q3’07 rising 26% Q/Q and 86% Y/Y in Q3’07 to a record 20.3M units and a 40% unit share of the TV market. LCD TVs remained the only technology to enjoy Y/Y revenue growth, up 48% Y/Y to $17.5B and a 66% revenue share of the TV market. ASPs were down 20% Y/Y to $861, the slowest decline since Q3’06 due to gains by larger sizes and 1080p as well the impact of constrained panel supply on individual panel prices. The average LCD TV size rose from 31" to 32" with 19", 26", 40", 46", 47" and 52" all enjoying impressive growth. 40" and larger LCD TVs rose to 23% and 43% of the LCD TV market on a unit and revenue basis respectively. LCDs took share from plasma at 40"-44" with their share rising from 63% to 66% and at 50"-54" where their share grew from 13% to 23%. 1080p LCD TVs accounted for 14% of units, up from 10% in Q2’07, and 31% of revenues, up from 24%. In the case of 40" and larger LCD TVs, 1080p accounted for a majority of units for the first time at 51% in Q3’07 vs. 42% in Q2’07. By region, North America overtook Western Europe to become the leading region for LCD TVs followed by China. In terms of brand share, the rankings were the same on both a revenue and unit basis with Samsung leading on a dollar basis for the third consecutive quarter and unit basis for the fifth consecutive quarter. As shown in Table 1, Sony and Sharp took share on significantly faster growth than the rest of the top 5. By region on a revenue basis, Sharp led in Japan, Sony led in North America, Samsung led in Eastern and Western Europe as well as in Asia Pacific, Latin America and Middle East & Africa. In China, Hisense, Skyworth and Sony were in a virtual tie for #1. At 1080p, Sony overtook Sharp to lead with a 20% to 19% share followed by Samsung at 16%.
Table 1: LCD TV Brand Revenue Share and Growth
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* Plasma TV shipments were up 24% Q/Q and 21% Y/Y to 2.8M units and a 5.5% share of the TV market, up from 5.0% in Q3’06. Japan, North America and Western Europe all had 10% penetration of plasma TVs in Q3’07 while other regions were as low as 2%. Plasma TV revenues were up 13% Q/Q but fell 19% Y/Y to $3.8B and a 14% share, down from 20% in Q3’06 on significant price reductions and slower average size gains due to the re-introduction of 32". Plasma TV ASPs fell 9% Q/Q and 33% Y/Y to $1373, while the average size only increased slightly from 44.8" in Q2’07 to 44.9" in Q3’07 with the 50" and larger share rising 30% to 31% of the market on a unit basis and 44% to 47% on a revenue basis. 1080p plasma TVs rose from 6% to 10% of plasma TV units and 14% to 21% of revenues. While plasma fell from 36% to 34% of the 40"-44" market, 1080p plasma TVs took share. At 50"-54", plasma remained dominant with a 67% share, down from 70%, but 1080p plasma took significant share in this category. Plasma TVs continue to encroach on RPTVs with their 55"-59" share rising from 18% to 34% and their 60"+ share rising from 22% to 24%. By region, North America remained the largest region for plasma TVs with a 32% share followed by Western Europe at 25% and Asia Pacific at 14%. Panasonic remained the market leader in Q3’07 with a 33% revenue share as shown in Table 2 and maintained the #1 position in Japan, North America, Eastern Europe, while overtaking Hitachi for #1 in China. Samsung enjoyed its highest share to date at 21% and overtook Panasonic for #1 in Western Europe. LGE led in Asia Pacific, Latin America and Middle East & Africa. Pioneer overtook Philips to earn the #5 position, enjoying the fastest growth of the top 5 brands on the launch of its new Kuro line of high performance plasma TVs.
Table 2: Plasma TV Brand Revenue Share and Growth
* MD-RPTV unit shipments rose 9% Q/Q but fell 50% Y/Y to 370K units and a 0.7% share, down from 1.6% in Q3’06, on continued share losses to flat panels. ASPs were up 5% Q/Q on gains at 1080p and at larger sizes, but fell 19% Y/Y on severe price competition with flat panels to $1643. The average diagonal rose to a record high of 55.5", up from 53.9", on share losses at smaller sizes. With the size gains, the 1080p share surged from 52% to 74% of shipments. By technology, DLP remained dominant with a 57% share, down from 63%, on flat growth. 3LCD accounted for a 26% share with LCOS at 17%. North America and Asia Pacific were the only regions to enjoy Q/Q growth and North America continued to dominate with its share rising from 92% to 95% of revenues. 55" and larger sizes rose from 53% of Q2’07 to 65% of Q3’07 shipments. By brand, Sony reclaimed the unit advantage a 0.5% share lead over Samsung at 31.7% to 31.2%, but Samsung maintained the revenue advantage with a 29.3% to 28.6% advantage over Sony. Mitsubishi jumped to #3 with a 20% unit share. On a unit basis by region, Samsung led in Asia Pacific and North America, JVC led in Japan, Sony led in Western and Eastern Europe, Latin America and Middle East & Africa while Changhong led in China,
By TV brand:
# Samsung was the #1 brand on a unit basis for the fifth consecutive quarter with its highest share to date at 14% on 24% Q/Q growth as shown in Table 3. It was also the #1 brand on a revenue basis for the seventh consecutive quarter with a 17.9% share, also its highest share to date as shown in Table 6. Samsung was either #1 or #2 on a unit or revenue basis in each technology – #1 in LCD TV units and revenues, #2 in plasma TV units and revenues, #1 in CRT and MD-RPTV revenues and #2 in CRT and MD-RPTV units. Contributing to its long run at #1 are its strong brand, regional strength, focus on all major technologies, sizes and resolutions and top 2 capacity position in CRTs, LCDs and PDPs. By region, it was #1 in the 3 of the 4 largest regions on a revenue basis " North America, Western Europe and Asia Pacific " as well as Eastern Europe. It was also #1 in 720p/1080i share at 19.5%. No other supplier had more than a 10% share.
# LGE was the #2 brand on a unit basis for the fifth consecutive quarter, but fell from #2 to #3 on a revenue basis, losing ground to Sony. On a revenue basis, LGE remained #1 in Latin America and Middle East & Africa. By technology on a revenue basis, it was #2 in CRTs, #3 in PDPs and #5 in LCDs.
# Sony rose from #3 to #2 on a revenue basis and remained #4 on a unit basis. It had the highest unit growth and second highest revenue growth of the top 5 brands. On a revenue basis, it was #2 in LCDs and MD-RPTVs. Sony and Sharp were in a virtual tie in 1080p share across all technologies at 19.5%.
Table 3: TV Brand Unit Share and Growth
Table 4: TV Brand Revenue Share and Growth
