Revenues from global TV sales fall 12% to $23.7bn

Global television sales revenues in the second quarter of this year fell 12 per cent year-on-year (y-o-y) to $23.7 billion (Dh87bn) while shipments declined slightly less, down eight per cent y-o-y to 44.6 million units.

According to the DisplaySearch quarterly global TV shipment and forecast report, these results were a near mirror image of Q1 2009 results.

The research firm explained that not all technologies fared equally, though LCD TVs continued to post remarkably strong unit growth while all other technologies showed y-o-y declines in units. However, in revenue terms, all technologies were down y-o-y as the marketplace remains impacted by frugal consumers looking for the lowest prices amid the economic downturn.

Globally, flat panel TV share jumped from 68 per cent in Q1 to 74 per cent in Q2 as LCD TV price erosion continued at the same annual pace as Q1, falling 22 per cent y-o-y on average. LCD TV market share increased as a result from 62 to 67 per cent, acquiring nearly all that market share in a rapid shift from CRT to LCD in China as well as a big increase in North America market share from better than expected sell-through.


Shipment growth

Despite tight supply conditions for LCD panels in Q2, LCD TV shipment growth managed to maintain the same pace as Q1, rising 27 per cent y-o-y to 30 million units although revenues fell one per cent y-o-y. Plasma market share increased about half a percentage point to seven per cent while CRT share plummeted from 32 to 26 per cent on a unit basis. Both North America and China reached record shipment levels.

"LCD TV market growth remains impressive, gaining market share from incumbent technologies such as CRT at a quickening pace despite higher prices and a tight supply situation in Q2," noted Paul Gagnon, Director of TV Market Research at DisplaySearch. "Advanced technologies such as high frame-rate LCDs and 1080p resolutions also continued to increase in market share as the price premium narrows, even in these tough economic times."

North America dramatically took back the top position among global regions for TV shipments on a unit basis while reaching more than 10 million units shipped for the quarter. It reclaimed the crown from China where unit shipments fell 10 per cent q-o-q and 14 per cent y-o-y, mostly on a large decline in CRT TV unit volume that was not entirely made up by surging LCD growth.

Western Europe continued to experience weakness with total units declining three per cent y-o-y and was overtaken for the number three market position by Asia Pacific.


Brand positions

Samsung remained the global brand share leader in revenues for the 14th straight quarter, rising to a record revenue share of 23 per cent and also hitting a record unit share of 18.2 per cent.

LG Electronics remained number two after surpassing Sony in Q1, slightly increasing its revenue share to 13.7 per cent with small share gains in both LCD and plasma offsetting a decline in CRT share.

Sony held the number three brand position worldwide in revenues, although losing a little more than a point of share.

Samsung reclaimed the top LCD unit share position from Vizio in the highly competitive North America market. Vizio fell to number two on a unit basis in LCD TV for North America, but continued to see strong growth from a year ago with distribution in the growing discount channels like Walmart.

Funai, which includes the Philips and Magnavox brand in North America, surpassed Sony and rose to number three, having the strongest q-o-q unit growth among the top five North America LCD TV brands. Funai is prospering from close strategy alignment with discount channels and more frugal consumers.


The China factor

China remains a very competitive market as well, one dominated by domestic brands. The top five LCD TV brands in China on a unit basis are all Chinese and collectively account for nearly three-quarters of all units shipped to the region in Q2.

Skyworth was the top LCD TV brand at nearly 20 per cent unit share, but was followed closely by Hisense at number two. TCL rounded out the top three with 15 per cent unit share. Many foreign brands are eager to gain a foothold in China's growing market, but must compete with lower-cost Chinese brands. Consumer demand is being boosted by government stimulus programmes.

Keep up with the latest business news from the region with the daily Emirates Business 24|7 newsletter. To subscribe to the newsletter, please click here.