Shipments of TV sets in the US declined by 11% in the first quarter of 2013 compared to a year earlier, according to research firm IHS. US TV shipments dropped to 6.6 million units, down from 7.4 million in the first quarter of 2012. LCD TVs decreased 7%, while plasma plunged 39%.

　　However, the news was not all bad: ASP for LCD TVs increased 3%, driven by a recovery in consumer confidence and a focus on replacing main TV sets with more full-featured products and larger screen sizes.

　　The fall in the US reflected the worldwide decrease of television shipments during the first quarter. However, global TV shipments declined far lower, down by less than 2%.

　　The contraction in global volumes was driven by the decline in the remaining markets for bulky analog CRT sets as well as by the reduction in plasma demand. Other factors responsible for the decrease included a widespread cutback in LCD TV manufacturing volumes by major Japan-based vendors, and a repositioning of the market toward fewer, larger-size TV sets in the mature markets, said IHS.

　　Consumers spend more as feature demand increases

　　As a result of the ASP increase for LCD TVs, revenue was relatively stable by comparison, with total TV revenue dropping by 11% in line with total shipments, while LCD TV revenue declined significantly less than shipments, by 4%.

　　For brands relying on the LCD market, this creates an opportunity to expand their margins in the highly competitive TV market, the firm added.

　　"The US market is starting to reposition toward higher-end TV sets," said IHS analyst Veronica Thayer. "Now that most homes have at least one flat-panel TV, consumers have become more discerning in their tastes and place more value on features like LED backlighting, large screens and interactive smart TVs."

　　Large-size LCD TVs and LED lead the way

　　Large-size LCD TV sets larger than 50-inch in the diagonal dimension accounted for 27% of US LCD TV unit shipments in the first quarter, up from 15% one year before.

　　Furthermore, these large sets represented over half of all US LCD TV revenue, at 53%, up sharply from 39% one year earlier.

　　For top TV manufacturers, such high-cost sets represent an opportunity to maintain pricing despite declining unit sales in the US. Primarily because of increased shipments of 50-inch and 60-inch sets, the ASP for LCD TVs in the US increased on year in the first quarter. The ASP stood at US$704, up from US$682 one year earlier.

　　Meanwhile, LED-backlit sets increased their share of US TV unit shipments to 72%, up from 37% during the first quarter of 2012. LED sets accounted for 76% of total TV revenue, up from 52%, IHS added.

　　Samsung and Vizio remain the top US TV brands in 1Q13

　　In terms of competitive positioning, Samsung Electronics earned the highest revenue from the US market for all types of TVs and in the key LCD TV segment, despite strong gains by Vizio.

　　South Korea's Samsung during the first three months of 2013 accounted for 31% of overall US TV market revenue, up from 30% during the same period in 2012. The company also expanded its share of US LCD TV revenue to 28%, up from 27% one year earlier.

　　Meanwhile, Vizio increased its share of TV revenue sharply, rising to 16%, up from 11% in 2012. The US-based company also boosted its portion of US LCD TV revenue to 18%, up from 14% one year earlier, due to the increase in number of large-size TV models offered, particularly the very successful 60-inch, and helped by the brand's entry into Best Buy.

　　In terms of volume, the squeeze on the total number of shipped TVs still favored Samsung, with 1.6 million units in first-quarter 2013. However, Vizio managed to edge out Samsung on US LCD TV volume during the period by a few thousand units.

　　"Samsung has retained its position as the leading premium TV brand in the US by capitalizing on demand for premium features, but Vizio is making strong moves in volumes and large-sized models, although its current revenue is still lower," Thayer added. "Ultimately, feature-rich sets and large screen sizes lead to higher TV ASPs, which can provide an opportunity for manufacturers to regain margins."