High-End Television Growth Reported

Anne L. Fischer, Senior Editor

Flat panel and microdisplay rear-projection televisions may be pricey, but they are gaining market share. “Quarterly Global TV Shipment and Forecast Report” from DisplaySearch of Austin, Texas, says that total TV revenues are up 12 percent to $19 billion. This report looks at the third-quarter shipments and revenues for televisions by brand, region, size and resolution.

Quarter-to-quarter growth in flat panel televisions is up across the globe, with the exception of Japan, where flat panel sets already dominate the market.

Unit shares of flat panel TVs, including LCD and plasma sets, rose from 6 percent in the third quarter of 2004 to 16 percent in the same quarter of 2005. Within that group, LCD TV shipments rose 36 percent from quarter to quarter and 156 percent from 2004 to 2005, with 5.5 million units being sold, accounting for a 13 percent share of the TV market. Regionally, growth was steady across the globe, except in Japan, which was up just 1 percent because of market saturation.

Plasma shipments increased 40 percent from quarter to quarter and 143 percent from 2004 to 2005 with 1.6 million units sold, for a 3.6 percent share of the market. The report indicates that significant price declines accounted for the growth, but revenues were still up 65 percent for the year. Plasma TVs hold a 21 percent revenue share of the market.

Microdisplay rear-projection televisions showed a sequential growth in shipments after declining during the previous two quarters. The TVs surpassed cathode-ray tube rear-projection sets for the first time worldwide. The microdisplay market share was up slightly from quarter to quarter in 2005, but revenues experienced an 18 percent year-to-year increase in the third quarter of 2005, boosting market share to 8 percent. Technologies that are propelling this growth are digital light processors and liquid crystal on silicon. Regionally, North America dominates the microdisplay market with an 88 percent share. China experienced quarter-to-quarter growth of 44 percent.

Cathode-ray tube TVs are on the decline, the report contends, with all regions posting a drop of at least 9 percent, except China, where the market remained flat. These sets hold a 35 percent share of the total TV market on a revenue basis, down from 51 percent in the third quarter of 2004.

In terms of worldwide revenue and unit share for televisions, Samsung is the leader. Other dominant players include Panasonic, Philips, Sony, LG Electronics and TTE.

More information on the Display Search report is available at www.displaysearch.com.