Total LCD TV Shipments to Grow to 188M Units in 2010

Santa Clara, CA; June 29, 2010. According to the latest Quarterly Advanced Global TV Shipment and Forecast Report from market research firm DisplaySearch, total TV shipments in 2010 will pass 242 million units, a 15% increase from a 2% level of growth in 2009. Not only does the level of demand for LCD TVs look strong, rising 29% to 188 million units, but both plasma and CRT TV technologies have a better outlook in 2010 than previously expected. Within LCD TV, the trend toward increased LED backlight usage is one of the most intently watched areas as an acute supply chain shortage keeps the LED market segment from growing more quickly in 2010. CCFL models seem well supplied.

LCD continues to be the dominant TV technology worldwide, achieving more than 50% shipment share in nearly all regions, with Asia Pacific crossing 50% at the end of 2010. The key demand drivers remain compelling in 2010, including the World Cup, the completion of a digital TV transition in several Western European countries and the continued rollout of several new TV technologies, including LED-backlit LCD TVs, 3-D TVs, and Internet connectivity.

China continues to be a hot LCD TV growth market in 2010 due to expanding government stimulus programs and increased urbanization, with 35% Y/Y growth in 2010, down from 119% Y/Y growth in 2009. Japan has also been a surprisingly hot market, perhaps because consumers are upgrading early generation flat panels with newer, more feature-rich and energy-efficient models before government-sponsored upgrade programs end. LCD TV unit shipments in Japan are expected to rise 36% in 2010, three times faster than other developed markets like North America and Western Europe. Over the next four years LCD TV growth emphasis will shift to emerging markets like Asia Pacific, which includes India and Latin America.

Plasma TV shipments did quite well in Q1'10, rising 24% Y/Y as demand for high value-per-inch large TVs seems to have rebounded along with the improving economic conditions. Consumers want a large TV, but still feel enough of a budget pinch to seek out the best "bang for the buck." This trend is expected to continue in Q2'10, especially as large alternative LED-backlit LCD TVs remain quite expensive; DisplaySearch has increased its 2010 unit forecast for plasma TVs to 16 million units.