DisplaySearch Reports Plasma Panel Shipments Disappoint in Q4’06; Matsushita Share Surges to 40% as Korean Suppliers Falter

DisplaySearch reported in its Quarterly PDP Module and TV Shipment and Forecast Report that plasma panel shipments fell 4% Q/Q while rising just 3% Y/Y in Q4’06 to 2.7M panels. Q4’06 was just the second quarter since Q1’03 that plasma panels declined Q/Q. In addition, it was the first quarter that plasma panels--which are found in plasma TVs and public displays--grew less than 47% Y/Y. Plasma panel shipments were 15% lower than the suppliers’ aggregate forecast and 9% below DisplaySearch’s forecast. The lower than expected unit growth resulted in the first Y/Y decline to date in plasma panel revenues, down 15% Y/Y and 11% Q/Q to $1.8B. This decline came despite increasingly attractive plasma TV prices enabled by 7% Q/Q and 17% Y/Y reductions in plasma panel prices to a record low $670.

The decline can be attributed to loss of share to LCD TVs at <50” and the limited market for 50”+ TVs outside of North America, resulting in an increase in channel inventories and reduced panel demand. Shipments of <50” panels, which accounted for 76% of Q3’06 shipments, fell 6% in Q4’06; shipments of 50”+ panels, which accounted for 24% of Q3’06 shipments, rose 4% in Q4’06. As a result, the 50”+ share rose to 26%, up dramatically from 13% in Q4’05.

By supplier, Matsushita reclaimed the top position and dominated the Q4’06 market with a 40% share, up from 30% on 27% unit growth as shown in Table 1 on the strength of its Panasonic brand. It was #1 in both TVs and public displays, and also led in the three dominant sizes: 37”, 42” and 50”. Matsushita was also #1 in HD and 1080p panels and became the first plasma panel supplier to ship more than one million panels in a single quarter. LGE suffered a 36% decline as a number of its major customers shifted their 42” emphasis to LCD. Samsung SDI also experienced a double-digit decline for the same reason as LGE. It was #2 behind Matsushita in the two dominant products: 42” HD and 50”. Pioneer had the highest growth, up 73%, but remained #5.