Drop in global TV shipments persists in Q2

According to NPD DisplaySearch, worldwide TV shipments dropped by eight percent YoY for the second straight quarter, in 2Q12. The decline in TV shipments started in 4Q11 and has continued in this year, reflecting worsening global economic conditions and slower price erosion, dragging consumer demand.

Japan has been the hardest hit, with 2Q12 shipments plunging 77 percent YoY to less than 1.4 million. In developed markets, TV shipments were down 23 percent YoY, while emerging market growth slowed to three percent from double-digit growth at the end of last year. China, a strong driver of emerging market growth, rebounded from a 1Q12 decrease, growing six percent in Q2. Eastern Europe continued double-digit demand growth, but all the other emerging markets saw shipment levels fall from a year earlier.

"A sharp decline of demand in Japan and a correction in Europe following the analog broadcast shut-offs in 2010 and 2011 have significantly impacted the TV market and contributed to a decline in shipments," said Paul Gagnon, director, North American TV research for NPD DisplaySearch. "Emerging markets have also been affected by softer shipment growth recently, related to a rapid decline in demand for CRT TVs and to less price erosion in flat panels. Despite this, the growth in demand for larger screen sizes and the increasing feature mix is cause for optimism."

LCD TV shipments were down YoY for the second quarter in a row, falling two percent, but demand for LCD TVs of 40in and larger is strong, with Q2 shipments rising more than 15 percent YoY. Advanced features within the LCD TV market also showed improvement, as LED, high frame rate and 3D all increased in share during 2Q12. Meanwhile, plasma TV shipments fell for the sixth straight quarter, down by more than 20 percent.