The third quarter of 2005 has seen an increase both in volumes and revenues on the TV market. While year-on-year shipments grew by approximately 2.0%, quarter-on-quarter shipments were up by 12%.The total reached almost 44 million devices. Revenues were not affected by these volumes, as are other segments of the consumer electronic business, because flat panels and rear projection TVs can still be priced higher than cathode ray tube TVs, which are loosing ground, both in terms of revenues and volumes, to the latest technologies available. Revenues are up by almost 20% on a quarter/quarter basis, and the average price rose by 6%.
By suppliers' shipments and revenues, Samsung remained No. 1worldwide: No. 1 in revenues and units, ahead of LG Electronics. See the Korean picture? The reason invoked is that Samsung has held strong positions in every technology although it was never No. 1 in any single: It was No. 2 in CRT TVs, MD RPTVs and CRT RPTVs, No. 3 in plasma and LCD TVs. Panasonic was No. 2 for revenues and No. 7 for units sold, largely because of its dominant position in plasma TVs.
The flat panel segment -Plasma and LCD panels- are benefiting from customers' rush to buy such devices, and they, for the first time, earned a majority of revenues -although they are still a minority in units- with a 55% share of the overall market, to be compared with 48% in the second quarter of 2005, and 33% in the fourth quarter of 2004.
DLP TVs made a hit - here, the Panasonic PT61 DLX75...
Plasma TVs have grown 40% quarter-on-quarter, and 143% on a year-to-year basis, to 1.6 million units, while their share of the overall market has gone up to 3.6%. This, however, has not been possible without significant price cuts, so that the average price per unit has, in the plasma TV segment, dropped by 8% for the quarter-on-quarter figures, and more than 30% on a year-on-year basis. All mid-range sizes have been affected: 37, 42, and 50 inches devices. The overall revenues for plasma TVs have, nevertheless, topped at €3.3 billion, and they represent 21% of TV revenues- 19% for the same quarter in 2004.
In this plasma segment, the share of HD-ready TVs now represents 40% worldwide, and 66% in the US. This, because brands tend to narrow the price gap between SD and HD TVs. The winner is the larger segment (50 inches and above), since plasmas tend to be associated with big screens, as evidenced by many surveys. 50 inches plasmas represent more than 12% of this segment of the TV market. When compared to similar sizes in other segments, the big plasmas gained mostly on large CRD TVs, while the RP TV segment grew as well.
Panasonic (Matsushita) is still the biggest player: No 1 in North America, Japan, Europe, and even in China. LG Electronics is No 1 everywhere else (but where is it?).
The LCD segment has grown by 36% on a quarter-on-quarter basis, and more than 150% on a year-on-year basis, reaching a record 5.5 million units. In addition, LCD TVs now represent more than 13% of the overall TV market (5% for the 3rd quarter of 2004, 10% for the 2nd quarter, 2005). The surge of larger sized LCD TVs has had an impact on prices, with revenues up to €5.5 billion (up 37% quarter-on-quarter). The average diagonal has grown significantly, with 30 inches and larger LCD TVs share of the segment up to 36% in the 3rd quarter of 2005 from 29% in the 2nd quarter. There again, prices dropped.
Significantly, LCD TVs have gained weight against all other categories in the 15-19 inches, and 45-49 inches. Japan only has not seen a significant gain, because of an already high degree of penetration there, while Europe leads the pack with a 40% share, and North America 30%. The iconic 32 inches LCD TV has become the most popular TV segment worldwide at 27%.
Sharp is the winner here (Aquos series notably) with an 18% market share, before Philips, Samsung, Sony, and LG. Sharp is also No. 1 for revenues.
... But LCD TVs are gaining ground, especially in large screens: Sharp Aquos 65-in
Micro Display Rear Projection TVs (MDRP TV for the acronym-adverse) rose as well, by 50% on a quarter-on-quarter basis and 44% on a year-on-year comparison. MDRP TVs exceeded Cathod Ray Tube TVs (CRT TV) for the first time. This is an upsurge, since this technology had actually declined during the two past quarters. Market shares, even if up, are still confidential, with a growth in units of 1.5% in the 3rd quarter 2005 vs. 1.1% for the 2nd quarter 2005, and a growth in revenues of 8.1 % in the 3rd quarter 2005 vs. 6.5% for the 2nd quarter of the same year.
Looking at the technology angle, the clear winners are Liquid Crystal on Silicon (LCoS TV) -+150%- and Digital Light Processing TVs (DLP TV) -+66%- when LCD TVs rose almost 30% (only... )
By technology, Digital Light Processing TVs (DLP TV) and Liquid Crystal on Silicon (LCoS TV) drove the growth, up 66% and 151% Q/Q with LCD RPTVs up 29%. The fast growth of DLP allowed this segment to go past LCD RPTVs.
The 1080p MD RPTV gains allowed to slow the decrease in prices at 2% on a quarter-on-quarter basis at €1.30 billion approx., second best quarter ever, and about 18% year-on-year, at €2 billion. The 1080p MD RPTVs shipped to reach a 7% share for the 3rd quarter 2005, almost flat against 2nd quarter of the same year.
By market shipments, the MD RPTVs are largely US dominated, at almost 90% of the segment, in every size and category. Europe and Japan declined, while China rose substantially (+44% quarter-on-quarter).
Confidential market share, but Spheros is a beauty...
In terms of segment average size, larger is more beautiful, as exemplified by the share of 60-in and above screens gaining 3 points from 19% to 22%, while less than 50-in lost 1 point at 25% from 26%. Sony is still leading the pack, although less than before (36% to 32%). Samsung is also declining to 21% from 25%, yet it is still ranked second. Panasonic also fell from No. 3 to No. 4. Mitsubishi (No. 3 from No. 4) and Toshiba (jumped from No. 7 to No. 5) are winners. By region, Sony's still No. 1 except for Japan, which is dominated by Epson.