> Geez Paul, did I come across that badly? If so, it was a poor post. Anyway thanks for looking out and putting matters into perspective.
>
'Stew
It was probably me who was "despondent" and read too much into your post! The article that I am including _may_ provide some explanation into the recent behavior of GMST(the stock). However, it must be remembered that the flat sales of TV's are quite normal in this low margin industry. GemStar is not relying on "sales growth of TV's" but rather "market penetration"(a "gemstar inside" every TV that does get sold). Gem Star is doing very good in that regard--with new partners coming on board all the time. For GMST to be in every household(or 70% or so in one form or another) now seems to be a function of time only.
btw: When's their report coming out? Around the end of next week or so?
Sales of Tube TVs Rise Just 0.2%,
While Big-Screen Models Jump 16%
By EVAN RAMSTAD
Staff Reporter of THE WALL STREET JOURNAL
After strong growth for all types of TVs last year, shipments to U.S. retailers of ordinary tube TVs, known as direct-view models, rose just 0.2% in the first half of the year, according to the Consumer Electronics Manufacturers Association. However, shipments of big-screen, or rear-projection TVs, rose 16%.
Though big-screen models account for just 5% of all TV sales, they contribute more heavily to a TV maker's profits. In addition, the segment is likely to provide the first indication of any change in consumer demand due to digital TV sets.
Television Tussle
Major manufacturers are fighting for share of a sluggish market. Second-quarter U.S. market share:
1999 1998
Philips/Magnavox 12.5% 16.6%
Sanyo 12.0 10.8
RCA 12.0 11.9
Zenith 9.0 10.6
Sony 8.2 7.9
Panasonic 7.2 5.7
Sharp 7.1 7.2
Toshiba 5.3 4.2
JVC 4.9 3.7
Orion 3.9 N.A
Source: Intelect/NPD
So far, big-screen TVs have been little-threatened by new digital sets. Few TV stations have started broadcasting on new digital channels, and consumers must pay at least $4,000 for a TV and receiver to show digital pictures.
Meanwhile, soaring demand for TV accessories such as digital videodisk players, satellite systems and camcorders is driving many of the nation's electronics retailers to record sales and profits this year.
Among TV manufacturers, Sanyo, Panasonic, Toshiba and JVC made healthy share gains during the second quarter.
In direct-view TVs, Philips Electronics NV of the Netherlands remained the top U.S. seller, although its second-quarter market share slipped to 12.5% from 16.6% a year ago, according to NPD Intelect Market Tracking, a research firm in Port Washington, N.Y. Philips experienced a spike in share a year ago when it benefited from a combination of higher-than-expected industrywide demand and a greater-than-usual inventory of its goods.
Sanyo Electric Co. Ltd., the No. 2 brand in the U.S., had 12% of the market, up from 10.8%. Matsushita Electric Industrial Co.'s Panasonic and Victor Co. of Japan Ltd.'s JVC gained more than a percentage point in share. All three companies made significant merchandising and advertising changes, said Tom Edwards, an analyst at NPD Intelect.
Zenith Electronics Corp., the No. 4 brand, dipped to 9% from 10.6%, a sign of its financial struggle. The company, based in Glenview, Ill., is reorganizing under Chapter 11 of the U.S. Bankruptcy Code.
In big-screen TVs, Sony Corp.'s market-leading share grew to 24.5% in the second quarter from 22% a year ago. Toshiba Corp. rose to second place with a 19.3% share, from sixth with 9.3% a year ago. The company's gains came at the expense of Thomson Multimedia SA's RCA brand and Hitachi Ltd., which previously were No. 2 and No. 3.
Market share among television manufacturers tends to be volatile because retailers typically make infrequent, large purchases and retain TVs in inventory longer than other electronics goods such as personal computers. In addition, the market is heavily influenced by end-of-the-year holiday sales at mass merchants.
Manufacturing schedules and other issues tend to heavily influence big-screen TV sales. For instance, Sony experienced trouble with a computer chip in big-screen models last month, resulting in shipping delays that may affect its third-quarter market share. A Sony spokeswoman said production has returned to normal, and the company believes it can meet its orders for the fourth quarter, when TV sales are heaviest. |
