For the first time, worldwide revenues in the LCD TV market are expected to decline, according to an analyst report released on Thursday.
Analyst firm DisplaySearch said that while LCD sales are expected to increase by 17 percent to 119.9 million units, revenue is expected to decline by 16 percent to $64 billion, while total TV revenues will fall by 18 percent to $88 billion. Overall TV unit sales are also predicted to fall 1 percent to 205.3 million units, which would be the first time overall TV sales, let alone LCD sales, have ever dropped.
Given the disparities between units and revenue, prices will undoubtedly fall – good news for consumers, DisplaySearch reported. "DisplaySearch expects that 2009 will be the most difficult year yet for the TV industry and supply chain," the firm said.
What does this mean for those interested in a new TV? Most likely that, although LCD TV manufacturers have purchased several key components at close to cost, the cheap prices could persist well in to 2009. And that means more affordable key technologies.
"TV brands, as well as panel manufacturers and material suppliers, will need to aggressively increase 1080p penetration (even for 32"/37" sizes), and accelerate penetration of 120-Hz and differentiated products such as Ultra Slim FPD TVs in order to maintain ASPs," DisplaySearch wrote.
DisplaySearch's estimates are grim: in 2008, LCD TV sales are expected to be 102.2 million units, a decrease of 3.3 million units from an earlier estimate. The 2009 forecast of 119.9 million units represents a decrease of 11.5 million units. And those numbers are worldwide totals; in Japan, North America and Western Europe, LCD TV growth will be even less, or just 2 percent, the firm reported. (full Story)
Analyst firm DisplaySearch said that while LCD sales are expected to increase by 17 percent to 119.9 million units, revenue is expected to decline by 16 percent to $64 billion, while total TV revenues will fall by 18 percent to $88 billion. Overall TV unit sales are also predicted to fall 1 percent to 205.3 million units, which would be the first time overall TV sales, let alone LCD sales, have ever dropped.
Given the disparities between units and revenue, prices will undoubtedly fall – good news for consumers, DisplaySearch reported. "DisplaySearch expects that 2009 will be the most difficult year yet for the TV industry and supply chain," the firm said.
What does this mean for those interested in a new TV? Most likely that, although LCD TV manufacturers have purchased several key components at close to cost, the cheap prices could persist well in to 2009. And that means more affordable key technologies.
"TV brands, as well as panel manufacturers and material suppliers, will need to aggressively increase 1080p penetration (even for 32"/37" sizes), and accelerate penetration of 120-Hz and differentiated products such as Ultra Slim FPD TVs in order to maintain ASPs," DisplaySearch wrote.
DisplaySearch's estimates are grim: in 2008, LCD TV sales are expected to be 102.2 million units, a decrease of 3.3 million units from an earlier estimate. The 2009 forecast of 119.9 million units represents a decrease of 11.5 million units. And those numbers are worldwide totals; in Japan, North America and Western Europe, LCD TV growth will be even less, or just 2 percent, the firm reported. (full Story)
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