Display Search Reports Global LCD TV Shipments Rise 135% in Q1:

Sony #1 in Revenues, Philips Earns Top Unit Share

DisplaySearch, the display market research and consulting firm, reports that LCD TV shipments jumped 135% year-over-year (Y/Y) while falling 14% quarter-over-quarter (Q/Q) to 7.4M units. LCDs had the fastest Y/Y growth and smallest sequential decline of any TV technology in Q1'06, taking share in each region and were the only technology to gain share sequentially rising from a 15% share in Q4'05 to a 17% share in Q1'06. Due to gains by larger sizes, LCD TV revenues grew nearly as fast as LCD TV unit shipments, rising 114% Y/Y while falling 12% Q/Q to $8.8B. The average diagonal rose 19% Y/Y and 2% Q/Q to 27.0" as larger sizes continue to become increasingly affordable. ASPs increased 2% Q/Q while falling just 9% Y/Y to $1195. 37", 40"-42", 20"-21" and 45"+ were the only size categories to gain share with 22"-23", 26"-27" and 30"-32" flat and other categories losing share. The 37" and larger share rose from 12% to 14% on a unit basis and from 29% to 32% on a revenue basis.

Relative to other technologies, LCD TVs overtook CRT TVs at 30"-34" for the first time on a unit basis in Q1'06 and rose from 17% to 23% of the 40"-44" market with PDPs and MD RPTVs losing share.

All regions enjoyed at least 116% Y/Y growth except Japan which grew just 35%. Europe and China continued to take share from North America and Japan with Europe's share rising from 44% to 46% on pre-World Cup demand.

Four brands dominate the LCD TV market accounting for a 50% share of units and a 54% share of revenues. The rankings of these four depend on whether units or revenues are examined with the rankings reversed due to SONY and Samsung's focus on larger sizes supporting their revenue share and Philips and Sharp's focus at all sizes supporting their unit share. Philips was #1 in units but #4 in revenues while Sony was #4 in units and #1 in revenues. Sony had the greatest focus on larger sizes of the top nine brands with 63% of its shipments at 30" and larger compared to Samsung at 51%, Sharp at 41% and Philips at 38%. Philips was #1 in units in Europe and North America and led the 15"-19" market worldwide. Sharp rose from #3 to #2 in units worldwide, remained #1 in Japan and maintained the top position at 10"-14", 20"-21", 37" and 45"+ size categories. Samsung had the slowest sequential decline of any of the top four brands and overtook Sony at 2! 2"-23", 26"-27" and 30"-32". It led in rest of world (ROW) and was a close second to Philips in Europe. Sony remained #1 at 40"-42". On a revenue basis, Sony remained #1 in North America, Samsung led in Europe and ROW, Sharp remained #1 in Japan and Hisense remained #1 in China.