News

29/7/2003

DisplaySearch Report Indicates Sharp Continues to Lead LCD TV Market Despite Softness in Japan

DisplaySearch, the worldwide leader in flat panel display (FPD) market research and consulting, indicated in its latest Quarterly LCD TV Shipment and Forecast Report that equal to or greater than 10" LCD TV shipments showed no signs of seasonal weakness in Q1'03, rising 47% Q/Q and 223% Y/Y to 734K units. Rapid growth is expected to continue in Q2'03 with shipments up 20% Q/Q and 224% Y/Y to 882K units.

This report now divides the LCD TV market into three unique segments:

*Pure LCD TVs, which feature integrated TV tuners and are sold in the consumer electronics (CE) channel by traditional TV brands.

*Multi-function monitors (MFMs) sold in the CE channel primarily by TV brands. These products do not feature an integrated TV tuner, but typically include a video input, a VGA input for PC usage and a TV industrial design.

*MFMs sold in the IT channel by LCD monitor brands, which feature an integrated TV tuner, video input, VGA input, and may have a monitor or TV look.

Contributing to the rapid Q1'03 growth was the inclusion of multi-function monitors (MFMs) in the IT channel, which accounted for 12% of the LCD TV market. If we exclude the MFM/IT channel segment, LCD TV growth was still robust at 29% Q/Q and 183% Y/Y. Pure LCD TVs accounted for 73% of shipments, with MFMs in the CE channel at 15%. Looking forward to Q2'03, MFMs in the IT channel are expected to drive growth at 41%, followed by MFMs in the CE channel at 26% and pure TVs growing 15%. Pure TVs are expected to continue to lead, however, with a 70% share.

Regionally, North America led for the first time with a 35% share on 96% growth to 260K units. North America trailed Japan in the pure LCD TV market at 42% to 31%, but led the MFM/CE market and the MFM/IT markets. Japan's shipments declined 5% causing its share to fall from 52% to 33% despite the expansion of categories, indicating likely slower than expected sell-through in Q4'02. In Q2'03, Japan is expected to overtake North America with a 37% to 34% advantage on 34% growth vs. 16% for North America as the Japan market rebounds. Japan is dominated by pure LCD TVs, which occupied a 92% share in Q1'03 while North America featured a much higher share of MFMs at 36% in Q1'03, expected to rise to 47% in Q2'03.

15.x" was the most popular category with a 33% share, down from 35%, while 20" VGA was the single most popular size and resolution with a 22% share. The pure LCD TV segment led at 15 different individual sizes and resolutions in Q1'03, with the MFMs/CE channel leading in three categories, and the MFMs/IT channel leading in just one segment. The average LCD TV diagonal of 17.6" was up 2% in Q1'03 and is expected to rise 2% again in Q2'03, led by the pure LCD TV segment, up 3%.

By resolution, VGA led with a 52% share, down from 58%, with wide aspect ratios accounting for a 23% share. Wide aspect ratios are segmented into 15:9, 16:9 and 16:10, with 15:9 currently dominating at a 75% share.

In terms of LCD TV shipments by brand:

*Sharp remained the leading LCD TV brand in Q1'03 with a 43% share, down from 52%, on 22% growth. It has been #1 in LCD TVs for at least the past eight quarters and is expected to remain #1 for a ninth consecutive quarter in Q2'03. It earned a 60% share of the traditional LCD TV market with no other supplier above 10%. It led the pure LCD TV market in all regions. Overall, it remained #1 in Japan and North America in Q1'03, overtook Samsung in Europe to reclaim the #1 position and remained #2 in ROW. By size, Sharp was #1 in all segments in which it participated in Q1'03, including 10"-14", 15.x", 20", 22"-27", 28"-32" and 33"-37". Japan was its dominant region accounting for 49% of its Q1'03 shipments.

*Samsung remained #2 in Q1'03 with a 20% share on 57% growth. It has gained share for three consecutive quarters. Samsung was #2 in the pure LCD TV segment with a 9.5% share, #1 in MFMs/CE channel with a 48% share, and #1 in MFMs/IT channel with a 51% share. Regionally, North America accounted for 49% of its shipments. It was #1 in ROW with a 33% share, down from 37%, and fell from #1 to #2 in Europe as its share fell from 37% to 28%. It remained #2 in North America with a 28% share, down from 35%, and fell from #4 to #5 in Japan with a 4% share, up from 3%. In the case of MFMs/CE channel, it was #1 in all regions. In the case of MFMs/IT channel, it was #1 in North America and ROW. By size for all segments, it was #2 at 15.x", #1 at 17"-18", #3 at 22"-27", #4 at 28"-32" and #1 at 40"+.

*Sony remained #3 in Q1'03 with a 6.4% share, down from 8.0%, on 18% growth. Like Sharp, it is currently focused on the pure LCD TV market in which it had a 9% share in Q1'03. It was #3 in Japan and North America, #5 in ROW and #7 in Europe. By size, it was #3 at 15.x", #2 at 17"-18", #4 at 20" and 22"-27" and #2 at 28"-32".

The latest report also features a number of enhancements in addition to the additional segmentation. First, LCD TV brand market share is provided for each of the three LCD TV segments by size and by region, dramatically increasing the branded content.

Second, we aggregated all the TFT LCD supplier roadmaps for LCD TVs, which will help TV brands determine at what sizes there is a critical mass of suppliers and where standard sizes are likely to be established.

Third, a detailed bill of materials is provided for all LCD TV sizes and forecasted forward eight quarters, along with channel and brand margins to forecast average street prices by size.

Fourth, we provided deinterlacer market share by supplier for the first time, with Pixelworks the market leader at 43% followed by Trident at 25%.

The Quarterly LCD TV Shipment and Forecast Report is available in print or an electronic site license version for $3,495-$3,995.

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