According to two recent DisplaySearch reports, 10in and larger LCD TV shipments grew 125 percent year over year (Y/Y) while falling 13 percent quarter over quarter (Q/Q) to 3.15 million units in the first quarter of 2005. A key growth driver: significant reductions in prices supported by significant cost reductions from new fabrication facilities optimized for larger LCD production. From Q1 '04 to Q1 '05, prices for the majority of LCD TVs 20in and larger fell at least 20 percent – and in some cases, the average selling price (ASP) fell to at least 40 percent.
LCD TV demand surged worldwide, but was particularly robust in China where shipments grew 55 percent Q/Q and more than 400 percent Y/Y to 200,000 units. China's share of the worldwide LCD TV market jumped from 3.6 percent to 6.4 percent, with Chinese brands having a 67 percent share of the domestic market. China's TV shipments were seasonally strong in Q1 because of the March Festival, which supports the large share gains.
The European LCD TV market rose the second fastest at up to 188 percent Y/Y while falling 8 percent Q/Q to 1.27 million units. With this growth, Europe remained the largest LCD TV market with a 41 percent share, up from 38 percent in Q4 '04. Because of emphasis on smaller TV sizes and desire for thinner form factors, LCD TV penetration continues to rise in Europe.
North America had the largest Q/Q decline, down 31 percent but rising 102 percent Y/Y, to 648,000 units. It had a 21 percent share, down from 26 percent in Q4 '04. The large decline in North America can be attributed to seasonal size preferences.
Japan remained the No. 2 region with a 26 percent share, down from 27 percent in Q4'04, on 66 percent Y/Y growth and a 17 percent Q/Q decline to 824,000 units. The Japanese LCD TV market remained larger than North America's, and gained significant share vs. other technologies in Japan in Q1 '05 – driven, as in Europe, by emphasis on form factor and smaller sizes.
Worldwide Branded LCD TV Market Share and Y/Y Growth
BrandShareY/Y GrowthQ4'04Q1'05Q1/'05 Sharp 21.9% 21% 82% Philips 14.7% 10.9% 129% Samsung 9.8% 10.8% 109% Sony 11% 10% 74% LGE 6.7% 7.3% 57% Other 35.9% 40% 216% Total 100% 100% 125%
In Q1'05, Sharp remained No. 1 worldwide with a 21 percent share, down from 21.9 percent. Sharp was also the No. 1 LCD TV brand in North America and Japan, No. 3 in Europe and No. 4 in China. Philips remained No. 2, although its unit share dropped from 14.7 percent to 10.9 percent. It remained No. 1 in the European market, but fell to No. 5 in North America. Samsung is in the No. 3 position with a 10.8 percent share. Samsung rose to No. 2 in North America and remained No. 2 in Europe. Sony dropped to No. 4 with a 10 percent share, holding the No. 2 spot in Japan and No. 6 spot in North America, while falling to No. 5 in Europe. In China, Hisense held onto the top position followed by Skyworth and Xoceco.
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