News

DisplaySearch Reports Global LCD TV Shipments Jump 162% in Q2'03; Sharp Remains Dominant But Sony Climbs to #2 (29/10/2003)

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 greater than or equal to 10" LCD TV shipments rose 17% Q/Q and 162% Y/Y to 715K units. If multi-function LCD monitors with integrated TV tuners (MFM TVs) are included in the total, LCD TVs reached 831K units, with MFM TVs earning a 14% share of the total, on 29% Q/Q growth. In Q3'03, we expect faster growth for both LCD TVs, up 46% Q/Q, and MFM TVs, up 34% Q/Q, as existing players roll out a growing number of products and new players enter, with combined shipments expected to reach 1.2 million units on 45% Q/Q growth.

After a weak Q1'03, Japan drove the LCD TV/MFM TV market on 24% growth, causing its share to rise from 36.7% to 38.5%. North America experienced the slowest sequential growth, up 9% Q/Q, after a strong Q1'03, causing its share to fall from 31% to 29%. By size, 15" XGA overtook 20" VGA to become the single most popular product. While 15" XGA was most popular in North America, Europe and ROW, 20" VGA was the most popular format in Japan. The Japanese market is trending toward larger sizes, with the average LCD TV diagonal at least 1" larger than other regions and expected to be 2" larger than Europe and North America in Q3'03 as space-sensitive Japanese buyers look to LCD TVs for their family rooms and bedrooms. Japan led the LCD TV market with a 42% share, up from 39%, while North America led the MFM TV market with a 45% share, up from 40%.

By resolution, VGA continued to lead, but its share dropped from 51% to 37%, losing ground to XGA and WXGA. WXGA is expected to overtake VGA in Q4'03 as larger sizes, which employ this resolution, grow rapidly. By aspect ratio, wide formats rose from a 22% to a 29% share and are expected to overtake 4:3 aspect ratio products by the middle of 2004. The latest report also surveyed LCD TV brands on their shipments by input type. We found that 50% of LCD TVs/MFM TVs in Q2'03 featured an RGB or VGA input with 13% featuring a DVI input.

In terms of LCD TV/MFM TV shipments by brand:

-- Sharp remained the leading LCD TV and LCD TV/MFM TV brand in Q2'03 for the 9th consecutive quarter with a 31% share, down from 45.5%, on a double-digit decline due to weakness outside of Japan. It remained #1 in Japan and North America, but fell to #3 in Europe and ROW. It led the LCD TV market with a 36% share, down from 52%. By size worldwide, it led the LCD TV/MFM TV market in most categories including 10"-14", 15"-16", 20"-21", 22"-27", 28"-32" and 33"-37". The only size segments it did not lead were 17"-19" and 40"+. Although it did not participate in the MFM TV segment in Q2'03, it entered that market in Q3'03 and is expected to reach the #4 position. It is expected to lead the Q3'03 LCD TV market with a 30% share and the LCD TV/MFM TV market with a 31% share, retaining its #1 ranking in Japan and North America and rising to #2 in Europe and ROW. With Sharp enjoying a strong position worldwide, beginning mass production at the world's first 6th gen TFT LCD fab in Q1'04, and enjoying an approximate three-quarter time to market advantage over the next 6th gen fab, resulting in a significant cost advantage, it will likely be difficult to unseat Sharp as market leader in 2004.

-- Sony's LCD TV shipments rose 91% in Q2'03 boosting its share from 7% to 12% enabling its ranking to rise from #3 to #2. In the case of its position in the total LCD TV/MFM TV market, its share and ranking were slightly lower at a 10.5% and the #3 position as it does not offer MFM TVs. By region for LCD TV/MFM TV shipments, it rose from #3 to #2 in Japan, remained #3 in North America, rose from #7 to #6 in Europe and remained #5 in ROW. By size in Q2'03, it was #4 at 15"-16" and 17"-18", #3 at 20"-21" and 22"-27" and #2 at 28"-32". In Q3'03, it is expected to boost its LCD TV/MFM TV share further to 13.6%, nearly equivalent to Samsung, on dramatic growth. In just LCD TVs, it is expected to maintain the #2 position with a 16% share. Regionally, it is expected to remain #2 in Japan, #3 in North America and #6 in Europe and fall to #6 in ROW.

-- Samsung remained #2 in LCD TV/MFM TV shipments with a 13.3% share, down from 14.2%, on 12% growth. Although its LCD TV share rose from 9% to 11% on 44% growth, it fell behind Sony and LGE to drop to the #4 position. In the case of MFM TVs, it remained #1 with a 29% share, down from 51%, despite a double-digit decline. Regionally for LCD TVs/MFM TVs, it was #5 in Japan, #2 in North America and Europe, and #1 in ROW. By size, it was #3 at 15"-16", #1 at 17"-18", #2 at 22"-27" and #1 at 40"+. In Q3'03, Samsung is expected to remain #2, but just barely as its share advantage over SONY/AIWA falls to just 0.1%. It is expected to overtake LGE in LCD TVs rising to #3, with its share rising from 11% to 13%. On the other hand, it is expected to fall to #3 in MFM TVs. By region, it is expected to fall to #6 in Japan, remain #2 in North America, rise to #1 in Europe and remain #1 in ROW.

This report also looks forward five years and reveals that, with TFT LCD manufacturers pulling in their investment schedules, the LCD TV/MFM TV market will grow at a 96% CAGR to 39 million units and a 21% share of the TV market, up from 3% in 2003. If MFM TVs are excluded, LCD TVs would still rise at a 92% CAGR to 36 million units and a 19% share. The optimistic outlook is derived from consumers' desire for flat TVs along with a significant amount of TFT LCD capacity being added that is optimized for LCD TVs, resulting in lower prices.

The latest report also provides shipments by type (LCD TVs vs. MFM TVs) by region by size by supplier for the first time so readers can learn who the leading players are at each size in each region. It also forecasts shipments forward eight quarters by type by region by size. As with previous reports, it also provides panel shipments, deinterlacer shipments, TV brand-OEM-panel supplier relationships, panel supplier roadmaps and a detailed bill of materials (BOM) and BOM forecast for all sizes. In the case of deinterlacer shipments, the report reveals that motion adaptive deinterlacer shipments rose 68% Q/Q and 617% Y/Y in Q2'03 and are expected to rise 74% Q/Q and 714% Y/Y in Q3'03.

www.displaysearch.com