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LCD TV Sales Still Sliding
Posted by Eric Savitz
Demand for LCD televisions in the U.S. continues to disappoint.
In October, overall U.S. retail electronics revenue fell 5.8% from a year ago, according to the research firm NPD Group, with sales of 2D LCD televisions down 24.7% in dollars, and 2D plasma TVs down 22%. Even including 3D models, LCD TV sales for the month were down 15.4% from a year ago.
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Russian LCD TV sales continue to soar, says iSuppli
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Press release, November 12; Yvonne Yu, DIGITIMES [Friday 12 November 2010]
With their hold intensifying on the Russian TV market, LCD TVs will cause the sales of older CRTs to disappear in the country within 4-5 years, according to the market research firm iSuppli.
Shipments of LCD TVs to the Russian Federation, the world's biggest country by area, are projected to reach 5.9 million sets at the end of 2010, up a solid 18% from five million units in 2009.
"In a market that iSuppli believes is 98% saturated, with nearly every household owning at least one TV set, the popularity of LCD TVs continues to draw new buyers," said Riddhi Patel, director and principal analyst for TV systems at iSuppli. "In contrast, CRT TVs are on a steady decline." Although still comprising the second largest TV segment in Russia in 2010, shipments of CRT TVs will plunge to a mere 193,000 by 2014, down from 1.3 million units in 2010. Unit share of shipments for CRT TVs will fall to just 4% in 2014, down from 16% in 2010, while LCD TVs will expand by 3pp to 79%. As the Russia market increasingly transitions to flat-panel TVs, the CRT TV segment will vanish into insignificance after 2015.
For their part, plasma TVs, at present the smallest segment of the Russia's TV market, will see their share of unit shipments grow from the current 13% to slightly more than one-fifth of the total market, or 21%, in just four years.
Among LCD TVs, the 32-inch model is the most popular screen size in the Russia market, making up 43% of total LCD TV shipments in 2010. However, while leading the way in LCD TV market growth for the next 3-4 years, the 32-inch market will yield gradually to 40-inch-and-larger models after that, especially as prices retreat for the bigger sizes. In particular, the Winter Olympics sports event, scheduled to be held in the southwest Russia city of Sochi in 2014, is expected to contribute to a significant increase in sales of large-size TVs.
Unlike the great popularity of the overall LCD TV market, the newer technology represented by the LED backlit sub-segment is still making its way slowly through the country. Nonetheless, LED market share is projected to increase substantially in the coming years, with the energy savings of the sets proving attractive to consumers. By 2014, LED-backlit LCD TVs will comprise more than 50% of all LCD TV shipments in Russia.
Already, market leaders such as Samsung Electronics, Toshiba, LG Electronics, Sony and Philips Electronics have started producing or importing LED-backlit models. Local manufacturers likewise have included LED-backlit sets in their latest product portfolios.
For 3D, TVs featuring the technology are considered a premium item and account for less than 2% of total LCD TV shipments in 2010. With the development of 3D content, however, share is anticipated to climb to almost one-third of total LCD TV shipments by 2014.
Overall, manufacturers have restarted production facilities while also increasing the number of TVs being produced in the country. LCD manufacturers such as Samsung and LG are either making the sets in their own facilities, or are assigning them for production to contract manufacturers like Sony and Philips. Panasonic, which imports a range of plasma TVs into Russia, also has plans to start manufacturing in the country in the near future.
The ASP in the country for LCD TVs this year will rise approximately 7% from 2009 to reach US$726. In comparison, the average monthly income of Russia's population in 2009 was US$536. |
