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Samsung dominates global LCD TV market

Posted: 24 Jul 2012 ?? ?Print Version ?Bookmark and Share

Keywords:IHS? LCD TV market? Samsung?

IHS has revealed that Samsung Electronics Co. Ltd has retained its dominant position in the global LCD TV business in Q1 despite weak market, which dropped 35 percent. The South Korean firm shipped 8.2 million LCD TVs globally while this was down 37 percent from 12.9 million in 4Q11, Samsung's decline was in line with the performance of the overall market. Overall, Samsung holds 19 percent share of global LCD shipments.

Samsung also was able to maintain a positive operating margin of five percent in its overall TV business during the period. The company was one of only two companies within the Top 5 to achieve this feat, illustrating the weakness in 2012 of the overall LCD TV business.

Global LCD TV shipments typically decline in Q1 following the peak holiday sales season in Q4. However, the 35 percent sequential contraction in Q1 was unusually sharp, above the 20-25 percent decrease more typically seen in previous years.

The precipitous drop this year was due to a number of factors, including weak global consumer demand, oversupply going into the end of last year and repositioning by a few major brands of loss-making TV divisions.

The decline was nearly as sharp for worldwide LCD TV revenue, which fell by 32 percent from Q4 to Q1. Heavy discounting in the face of tentative consumer spending led to the major drop between the 2011 holiday season and 1Q12.

In another troubling sign for the LCD TV market this year, shipments in Q1 were flat compared to same period last year, inching down a marginal 0.4 percent.

Despite these setbacks, LCD technology continues to advance its conquest of the TV market. LCD TVs in Q1 accounted for 87 percent of global TV revenue, a record high up from 86 percent in 4Q11.

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