In Q4 2008 Vizio Inc surpassed Sony Corp to become the second-largest flat-panel TV brand in the US, according to iSuppli Corp. US-based value brand Vizio accounted for 14.3% of flat panel TV -- i.e. LCD and plasma -- unit shipments in the US in Q4, up 3.11 percentage points from 11.2% in Q3.

In contrast, premium brands Sony and Samsung Electronics Co Ltd suffered declines of 0.42% and 0.62% respectively during the same period. Sonys share declined to 13.5% in Q4, down from 13.9% in the third, allowing Vizio to take the no.2 rank, behind only Samsung with its 20.2% share.

Vizio in Q4 posted the second-best performance among the Top-5 flat-panel TV suppliers in the US on a percentage basis. Only no.4 brand Panasonic exceeded Vizios results, with its shipments rising by 3.12%.

"Vizios success in the fourth quarter was partly due to increasing brand recognition, courtesy of the companys strong marketing efforts and retail strategy," said Riddhi Patel, principal analyst, TV Systems, for iSuppli. "A cornerstone of Vizios selling strategy is Wal-Mart, the worlds largest retailer, which features the companys LCD TV products. US consumers in November and December 2008 bought more TVs at Wal-Mart than at Best Buy, the first time this has occurred in the two years iSuppli has been conducting research in this area."

"This is an indication that in the present tough economic climate, consumers are becoming less brand conscious and prefer televisions that they perceive to have good picture quality and that are less expensive compared to the competition, rather than seeking models with a lot of extra features," Patel added.

The US TV market has been impacted by the recession and the past two quarters have been a struggle for brands and retailers. Consumer spending has decelerated and sales of big-ticket items like LCD TVs have not grown as quickly as in the past. This decelerating growth and stiffening competition has led to a shakeout among TV brands.

"Brands are finding it hard to survive in the current economic climate amid tough price competition," Patel said. "Olevia LCD TVs are no longer available since the company filed for bankruptcy in 2008. Pioneer has announced its exit from the TV market. During 2009, a few value brands will disappear from the market. The brands that survive will be the ones that either own or have very close ties with the LCD and plasma panel makers, allowing them to keep their costs down."