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LCD TV, monitor makers face tough times

Posted: 09 Dec 2010 ?? ?Print Version ?Bookmark and Share

Keywords:LCD TV? monitor? market report?

Global LCD TV shipments for 2010 is projected at around 180 million units, increasing by 25 percent year-on-year, according to a report from market research firm WitsView, the TFT-LCD research division of TrendForce Corp.

This is lower than the 40 percent year-on-year growth in 2009, and the report cites the slow recovery of the economy and the competition from smart phones and the tablet devices as reasons for this poor performance. At the same time, the analyst says that most products will be at a more affordable price in 2011, adding pressure to the sluggish segment.

The report also notes advertising failed to convinve consumers to cough up more cash to bridge the price gap between more expensive LED-backlight LCD TVs and more affordable CCFL -backlight LCD TVs.

The situation was worsened for LED-backlight LCD TV makers in 1H 10 by inventory problems. This led to cheaper prices as early as Q3 10, lessening the attraction of discounts given in the current season which are expected to increase sales in the US and Europe.

On an optimistic note, WitsView forecasts that in 2011, LED-backlight LCD TVs will be offered at a more affordable price and will lead in the growth of LCD TV demand for the year despite the advent of 3D TV and smart TV, which the report notes "have not been able to troop into the TV market." WitsView forecasts that the worldwide LCD TV shipments will grow by 22 percent year-on-year to around 220 million units in 2010.

The report says that the market for LCD monitors is even tighter than for TVs. WitsView estimates that worldwide LCD monitor shipments will grow only 6 percent year-on-year conservatively to around 180 million units in 2011. Monitor prices fluctuate with panel prices, and brand vendors have to absorb the price loss themselves, so they must be stricter in the inventory control and adjustment in order to avoid risk. Thus, since there is no evident growth momentum in the market, lowering the cost of LCD monitors will be the top priority.

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