DisplaySearch, a market research and consulting company, reported today that third quarter 2006 global LCD TV unit shipments jumped 99 percent year on year and 15 percent quarter on quarter, to a record high 10.8 million units, and 24 percent of the worldwide TV market, up from 22 percent in the second quarter of 2006. LCD TV shipments rose slightly faster than expected, with results exceeding DisplaySearch’s forecast by less than 1 percent. Sequentially, regional growth was led by China up 66 percent followed by North America, which rose 35 percent. Europe suffered a 5 percent decline as a result of inventory growth after World Cup demand failed to reach expectations. With Europe struggling, pricing pressure increased, which contributed to faster than expected growth in North America, enabling North America to overtake Europe for the first time with a 33.7 percent to 33.6 percent unit share advantage. Despite Europe’s struggles in LCDs, its decline was even greater in CRTs, enabling LCD TVs to overtake CRT TVs for the first time on a sell-in basis in the third quarter of 2006.
Blended prices fell 8 percent quarter on quarter and year on year to U.S. $1,102 despite increased adoption of larger sizes and higher resolutions. The average LCD TV diagonal was up 15 percent year on year to 29 inches, with the 37-inch+ share of total LCD TV shipments rising from 19 percent to 23 percent on 35 percent quarter on quarter growth. In fact, 37-inch+ LCD TVs overtook 37-inch+ plasma TVs for the first time in the third quarter of 2006, leading in China, Europe and Japan. In addition, the 1080p share of LCD TVs doubled from 2 percent in second quarter 2006 to 4 percent in third quarter 2006 on 118 percent growth. With unit growth outpacing blended pricing declines, revenues rose 6 percent quarter on quarter and 84 percent year to year to a record $11.9 billion and 48 percent of the global TV market.
Samsung rose from number two in units and revenues in second quarter 2006 to the top position in third quarter 2006 on 16 percent and 7 percent unit and revenue quarter on quarter growth, respectively. On a revenue basis, Samsung was number one in Europe and number two in North America. By size category, it was number one worldwide at 26-27 inches and 32 inches and was number two in the rapidly growing 40-42 inch and 46-47 inch segments. It also shipped more 40 inch LCD TVs than 42 inch plasma TVs for the first time.
Sharp rose from number three to number two on a unit basis and from number four to number three on a revenue basis on 23 percent unit and 13 percent revenue growth, respectively. It continued to dominate the Japanese LCD TV market and was number three in North America and number five in Europe on a revenue basis. By size category, it was number one worldwide at 10-14 inches, 20-21 inches, 37 inch and 55-inch+.
Sony fell from number one to number two on a revenue basis and remained number four on a unit basis on 9 percent unit growth and flat revenue results. It continued to lead the North American market on a revenue basis and was number two in Japan and number three in Europe, benefiting from the highest emphasis on larger sizes of the top 10 suppliers with 73 percent of its third quarter 2006 volume at 32 inches or larger. It was also number one at 40-42 inches and 46-47 inches, which were the two fastest growing segments in the third quarter of 2006.
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