Market Research on Lcd Tv - PDF

							LCD TV Market Growing Despite Weakness in North America; LED-Backlit
Set to Take Lead in 2011

SANTA CLARA, CALIF., October 6, 2010—According to the latest DisplaySearch Quarterly
Advanced Global TV Shipment and Forecast Report, total TV shipments in 2010 will reach more than
243 million units, a 16% increase from 2009. LCD TV shipments are expected to grow to
188 million units worldwide, up from 145 million units in 2009 as strong growth in Japan, Europe,
and emerging markets like China offsets meager growth in North America.

“North America LCD TV sales have been weak in 2010 so far, falling 3% Y/Y on a unit basis during
the first half of the year,” noted Paul Gagnon, Director of North America TV Research for
DisplaySearch. “Continued economic pressure, mostly in the form of high unemployment and a
weak housing market, have combined with a sharp slowdown in the pace of average price
erosion have pushed consumers to the sidelines as they wait for the economy to improve, prices
to fall further, or both,” noted Gagnon.

LCD remains the dominant TV technology worldwide, accounting for at least half of all TV
shipments in nearly every region. Although sales resulting from the World Cup were somewhat
disappointing in Europe, and the resulting elevation of inventory at the end of summer will slow
growth down in the second half, solid growth in other markets like Japan, China, Latin America,
and Asia Pacific will offset this weakness and contribute to 20% Y/Y growth during the second half
of 2010.

At the same time, LCD TV street prices are expected to start falling more vigorously in Q4’10,
especially for LED-backlit LCD TVs as an oversupply of LCD TV panels resulted in falling panel
costs during Q3’10. Consumers are very interested in LED LCD TV technology, but premiums were
very high in early 2010. Manufacturers have greatly increased the assortment of LED LCD TVs in
their line-ups, and consumers still seem to be waiting for premiums to fall on LED-backlit models.
Sales of lower-priced CCFL-backlit LCD TVs continue to decline despite having much lower prices.
DisplaySearch projects that average LED LCD TV prices will fall at twice the rate of CCFL LCD TV
prices during Q4’10. This should cause an improvement in growth rate, particularly for North
America.

DisplaySearch expects LED LCD TVs to account for the majority of LCD TV shipments in 2011, as
the cost premium reduces quickly and manufacturers continue to transition their LCD TV lineups
away from older CCFL technology. More than 50% of LCD TV shipments will be based on LED
backlight technology in 2011, up from 20% in 2010.

Demand for plasma TV continues to be robust, as LCD TV price declines have slowed while plasma
TV has maintained similar rates of price erosion. The result is that plasma TV shipments are now
expected to approach 18 million units in 2010, a 25% increase from 2009, even though shipments
actually declined Y/Y.

According to Hisakazu Torii, DisplaySearch Vice President of TV Research, “Because of the very
strong pricing advantage of large screen sizes and large improvements in power consumption and
thinness, plasma TV continues to be a key display technology in the TV category, especially
among a base of fans that favor this technology for picture quality and 3D performance.”

Figure 1: Worldwide TV Market by Technology
Source: DisplaySearch Quarterly Advanced Global TV Shipment and Forecast Report

The DisplaySearch Q3’10 Quarterly Advanced Global TV Shipment and Forecast Report includes panel
and TV shipments by region and by size for nearly 60 brands. Also included are rolling 16-quarter
forecasts, TV cost/price forecasts, and design wins. This report is delivered in PowerPoint and
includes Excel-based data and tables. For more information on this report, please contact Charles
Camaroto at 1.888.436.7673 or 1.516.625.2452, or contact@displaysearch.com. You can also
contact your regional DisplaySearch office in China, Japan, Korea or Taiwan.

Register Now for Upcoming DisplaySearch Conferences

DisplaySearch Business Forum IMID 2010—October 13, 2010 (Seoul, Korea)

DisplaySearch Taiwan TV Supply Chain Conference—November 3, 2010 (Taipei, Taiwan)

DisplayForum 2010 (Presented by Meko and DisplaySearch)—November 2-3, 2010 (London,
England)

For more information or to register online, visit www.displaysearch.com/events.

About DisplaySearch
Since 1996, DisplaySearch has been recognized as a leading global market research and
consulting firm specializing in the display supply chain, as well as the emerging photovoltaic/solar
cell industries. DisplaySearch provides trend information, forecasts and analyses developed by a
global team of experienced analysts with extensive industry knowledge and resources. In
collaboration with the NPD Group, its parent company, DisplaySearch uniquely offers a true end-
to-end view of the display supply chain from materials and components to shipments of electronic
devices with displays to sales of major consumer and commercial channels. For more information
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