Worldwide shipments of flat-panel TVs rose convincingly in the first quarter of 2014 compared to the same period in 2013, a stronger-than-expected showing that puts the industry on firm footing for the year, according to IHS.
The market for LCD TVs was particularly robust, climbing 4% from January to March in 2014 to 47.36 million units. And despite a 16% decline to two million units for global PDP TVs - which are on their way out of the industry permanently - total flat-panel TV shipments in the first quarter remained up by 3.3% to 49.36 million units.
"LCD TV shipments had expanded in the first quarter of 2013 because of a decline in the market during the same time in 2012, so in that sense growth last year was almost to be expected," said Jusy Hong, principal analyst for consumer devices at IHS. "But for the first quarter this year, shipments increased from an already respectable level during the same time in 2013, so what the industry has just experienced represents well-founded growth indeed at this time."
With the surprisingly robust expansion for the first quarter launching the industry on a solid start for the year, LCD TV shipments for 2014 could grow by 4% or even higher, Hong noted.
South Korea commands the field
Among flat-panel TV manufacturers, South Korea performed the best during the first quarter, with Japan also holding up well. However, China struggled, said IHS.
With aggregate shipments of 17 million units between them, Samsung Electronics and LG Electronics continued to be the top vendors and makers of flat-panel TVs. Overall, South Korea maintained on-year shipment growth higher than 10% for each of the three months in the first quarter - a distinction unmatched by any other group, including America- and Europe-based manufacturers.
Korea's growth can be attributed to an increased push in LCD TV shipments while makers pull out of the plasma business. Samsung, for instance, is scaling back sharply on PDP TV shipments, and it is preparing to relaunch HD LCD TV models in the new size range of 40- to 48-inch to replace 43- and 51-inch plasmas. Almost 100% of 40-inch and larger LCD TVs are Full HD models.
For their part, Japan-based makers scored during the period by boosting shipments before the country's consumption tax was increased from 5% to 8%. If Japan now cools because of the tax, Japan-based TV makers will likely have to reduce flat-panel shipments to the local market in the second quarter, IHS added.
In contrast to the strong performance of Korea and Japan, China-based TV brands and makers saw shipments shrink every month in the first quarter compared to the same period in 2013.
Ever since the government ended its subsidy for energy-efficient products in May 2013, China's TV market has cooled and has been unable to regain its previous level of vigor and activity. To revive the space, China-based makers are looking to release a number of new models in the coming months, including Ultra HD, OLED and curved TV sets.
In somewhat of a surprise, the global TV industry is also seeing renewed demand for TV sets coming from the developed markets, which are nearly saturated with flat-panel TVs. The rejuvenated interest could likely be coming from the release of new sets, including Ultra HD models that boast four times the resolution of high-definition 1080p sets.
The TV market as a whole is also recovering in Western Europe and North America as the economy improves in those regions, further boosting flat-panel TV shipments for the developed world, IHS noted. | 