Bringing an end to a full year of declines in 2012, global flat panel TV shipments rose slightly in the first quarter of 2013, paving the way for marginal growth in 2013, according to research firm IHS.
Global shipments of flat panel TVs comprising LCD and plasma sets amounted to 47.6 million units in the first quarter, up 0.4% from 47.5 million during the same period one year earlier. This represented the first on-year quarterly growth for the market since the fourth quarter of 2011, said IHS.
"While a less than 1% increase in the first quarter may not seem like much, it's a major achievement for a TV market that was stuck in the doldrums throughout 2012," said Jusy Hong, senior TV research analyst at IHS. "Just one year earlier in the first quarter of 2012, shipments fell by 5% and then continued to decline by 3.5%, 0.3% and 2.4% during the next three quarters. Even with weak results in February and March 2013, the rise for the entire first quarter sets the stage for the global flat panel TV market to return to growth this year, with a slight 0.4% increase expected in 2013."
An up-and-down quarter
Global flat panel TV shipments started the year with a bang, rising by 11% in January compared to the same month in 2012 because of strong seasonal Lunar New Year demand. However, shipments declined 9% in February and 3% in March as demand plunged following the Lunar New Year buying season. The strong performance in January was just high enough to offset the declines during the next two months.
The market is now showing signs of rebounding, with estimated on-year growth of 10% in April and another 9% increase forecast in May, IHS noted.
LCD TVs go up in sales
LCD TVs are leading the growth for the overall market, with a 2% expansion in shipments in the first quarter compared to a year earlier. Shipments of LCD TVs amounted to 45.2 million units, up from 44.3 million. Sales of LCD TVs are being boosted by 50-inch and larger sets, whose share doubled to 10% in February in 2013, up from 5% during the same time in 2012.
"LCD TV brands are aggressively increasing their large-sized TV lineup and shipments in order to improve profitability," Hong said. "Panel makers are following suit. This is resulting in declining prices for the larger sets, attracting more consumer interest."
Plasma plunges
In contrast to the strong performance of LCDs, plasma sales are dropping like a rock, constraining the growth of the overall flat panel market. Global plasma TV set shipments declined to 2.5 million in the first quarter, down 22% from 3.2 million one year earlier.
"Plasma shipments are declining because they are losing ground to LCDs in the market for large-size TVs, especially in the 50-inch segment," Hong said. | 