LCD-TVs Booming

Global LCD-TV shipments soared past expectations in the second half of 2005 due to rising manufacturing capacity and falling prices. That’s according to analyst firm, iSuppli, which has raised its market estimate and forecast for the segment. A total of 5.2 million LCD-TVs were shipped in Q3 2005, up 29.5 percent from 4 million in Q2 and up 136.6 percent from 2.2 million in Q3 2004. “Upcoming production capacity, declining pricing for LCD panels and television sets and escalating consumer interest and adoption, have led iSuppli to upwardly revise its estimate and forecast for LCD-TV shipments,” said Riddhi Patel, principal analyst, television systems, for iSuppli. “Shipments of 21-inch and larger size ranges are coming in higher than expected, mainly because of the improved efficiency levels and increased production at more advanced LCD fabs. However, the biggest revision to our outlook is in shipments of 30- to 34-inch panels. This is a result of four or more sixth-generation fabs coming online in 2005 and reaching full production in 2006.” iSuppli estimates that worldwide LCD-TV shipments amounted to 19.6 million units in 2005, up 121.7 percent from 8.9 million in 2004. iSuppli also has boosted its long-term outlook for the LCD-TV market, anticipating 76.7 million unit shipments in 2009, rising at a compound annual growth rate (CAGR) of 54 percent from 2004. iSuppli had previously predicted sales would increase to 61.2 million units in 2009, rising at a CAGR of 47.2 percent from 2004. TV panel prices fall LCD panel prices fell substantially in the second half of 2005, and this was reflected in finished television-set prices, iSuppli said. As the panel makers move to sixth-generation and newer fabs, their overall capability has increased to make large panels sized 32-inches and greater at economical costs. With these fabs beginning full-scale production now, panel and television prices will continue to decline, making LCD-TVs more affordable to consumers not only in the mature markets but also in emerging regions. iSuppli’s long-term forecast has been upgraded based on the greater acceptance of LCD-TVs with declining prices, improved performance and announcements of newer-generation fabs from panel makers. Increased sales in China associated with the 2008 Beijing Olympics are also a factor in the forecast, iSuppli said. Sony advances in Q3 Among LCD-TV makers, Sony Corp. was the big winner in Q3, jumping to the third rank, up from sixth in Q2, according to iSuppli’s rankings. Sony’s market share nearly doubled during the quarter.