LCD TV growth in 2009 exceeds forecast

Outlook for 2009 TV sales worldwide end of 2008 was radically scaled back after the global economy suffered a massive setback. The expected downturn in consumer demand seemed likely to make 2009 a bleak year for TV shipments. However, shipments far exceeded initial expectations as consumers snapped up discounted products.

According to the DisplaySearch Quarterly Advanced Global TV Shipment and Forecast Report, global TV shipments grew 2 per cent overall to 21.10 crore (211 million) units, and flat-panel TV technologies like

Strong flat-panel TV shipment growth in emerging markets like China (more than 100 per cent y-on-y)

"The better-than-expected 2009 results clearly demonstrate that consumers still have a strong desire to purchase flat-panel TVs, but at the same time are willing to shift their buying behaviour to match their budget in a recession-plagued year," noted Paul Gagnon, director of North America

For LCD TVs, this means that growth in sub-40-inch sets outpaced growth of big screens in mature developed markets like North America during 2009, despite the introduction of advanced new TV technologies to larger screen sizes, like LED-backlit LCD TVs and internet connected sets.

DisplaySearch is now tracking LCD TV shipments by backlight type, including a breakout of edge-lit and full-array types by screen size, resolution and frame rate. LED backlights are not new in LCD TVs, but they have become significantly more affordable and offer many valuable attributes like lower power consumption, thinner and lighter cabinet designs, and better picture quality. However, the premiums for LED-backlit LCD TVs had been prohibitively high until 2009, and are expected to narrow much further in 2010 with explosive growth expected. LED-backlit LCD TVs only accounted for 4 per cent of global units in Q4 09, but they had an 11 per cent share of 40-inch and larger, and a 24 per cent share of shipments of 50-inch and larger. As the screen size (and price) climb, the LED premium is more acceptable.

Samsung takes the lead
Samsung Electronics achieved their highest revenue share ever, reaching a record 23.6 per cent of global TV revenues in Q4 09. This high revenue share is the result of being the global leader in units as well as having a strong mix of larger screen sizes as well as leading positions in advanced technologies like LED backlit and high frame rate LCD TVs, all of which support higher average prices. Samsung has been #1 in both TV units and revenues worldwide every quarter for more than three years now, achieving a 22.6 per cent share of 2009 full year TV revenues.

LG Electronics was the #2 brand worldwide in TV shipment revenues and demonstrated the strongest annual growth among the top five brands, an indicator of the aggressive market share growth campaign the brand undertook in 2009. The result is that LG improved their total 2009 TV revenue share by a full 2 percentage points to 13.2 per cent, a larger increase than any other brand in 2009. LG's Q4 09 revenue share rose slightly, to 13.0 per cent.

Sony was #3 in global TV revenues during Q4 09 at 11.5 per cent, up sharply from 9.9 per cent in Q4'09, as sales for Sony surged during the holidays, typically a strong quarter for the company. Sony had the largest Q/Q shipment growth among the top five in Q4 09. However, Sony's full year 2009 total TV revenue share was down almost 2 percentage points from 2008, to 11.5 per cent, and is at the lowest level since 2005 when it last led the overall TV market. Much of Sony's share loss went to the two surging Korea brands that aggressively targeted growth in 2009.