Flat-panel TV shipments predicted to fall

Apr 03, 2012 By Andrea Chang

U.S. flat-panel television shipments are expected to dip for the first time on an annual basis this year, ending an unbroken string of growth since the segment was created.

According to a report from market research firm IHS iSuppli, shipments of are forecast to decline to 37.1 million units, down 5 percent from 39.1 million units in 2011. Last year, shipments inched up just 1 percent from 38.6 million units in 2010.

The flat-panel TV category includes liquid crystal display televisions, plasma TVs and rear-projection TVs.

Shipments are projected to continue to weaken until at least 2015, in large part because of the maturation of the U.S. television market.

"The U.S. flat-panel television market has never declined on an annual basis, even at the height of the recession in 2008 and 2009," said Lisa Hatamiya, TV for IHS, which tracks television sales data and trends. "The decline starting this year suggests that demand may have crested for the mature U.S. ."

Hatamiya said sales in the U.S. are now being driven by consumers who are replacing their older flat-panel sets with new models with advanced features. In developing regions of the world, untapped markets remain for buyers making their first-ever purchase.

Another reason sales are expected to decline is supply and dynamic developments that occurred in 2011, IHS said.

The firm said brands were too optimistic last year, with manufacturers increasing shipments in the first quarter "only to be proven wrong when the hoped-for sales failed to materialize."

A negative chain reaction that followed lasted through the year, with sets being very aggressively priced in the third and fourth quarters to make up for a weak first half. Those price cuts hurt profits across the board for almost every vendor, IHS said.

As a result, brands will be very cautious in 2012. Manufacturers will try to control new shipments into the U.S. market, so that prices remain steady.

"The attempt to rein in pricing could also prove dicey, possibly risking the ire of a purchasing public used to discounting or a pattern of gradually lower prices," IHS said. "The overall effect will serve to inhibit this year."

Explore further: China's Xiaomi raises more than $1 bn in funding

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Analysts: LCD TV sales to fall for first time

Dec 08, 2010

(AP) -- A research firm says shipments of LCD flat-panel TVs will fall this year from the year before, the first such decline since the popularity of such TVs took off in 2006.

Record 12 pct drop for PC sales in 2009: Gartner

Mar 02, 2009

Sales of personal computers are expected to decline by 11.9 percent to 257 million units in 2009, the steepest drop in the industry's history, market research firm Gartner said Monday.

Market research firm ups tablet forecast

Sep 14, 2011

With tablet computer sales soaring -- led by Apple's iPad -- a market research company boosted its forecast on Wednesday for shipments of the devices.

Thai floods expected to hit PC shipments into 2012

Nov 10, 2011

Thai flooding will significantly slow the global production of personal computers well into 2012, analysts said Thursday, as the country's huge hard disk drive industry struggles to its feet.

Recommended for you

China's Xiaomi raises more than $1 bn in funding

9 hours ago

China's top smartphone seller Xiaomi Corp. is raising more than $1 billion in a fresh round of funding, a move which would raise its valuation above $45 billion, a report said Sunday.

Why the Sony hack isn't big news in Japan

Dec 20, 2014

Japan's biggest newspaper, Yomiuri Shimbun, featured a story about Sony Corp. on its website Friday. It wasn't about hacking. It was about the company's struggling tablet business.

Sony faces 4th ex-employee lawsuit over hack

Dec 20, 2014

A former director of technology for Sony Pictures Entertainment has sued the company over the data breach that resulted in the online posting of his private financial and personal information.

Sony tells AFP it still plans movie release

Dec 20, 2014

Sony Pictures boss Michael Lynton denied Friday the Hollywood studio has "caved" by canceling the release of "The Interview," and said it still hoped to release the controversial film.

2012 movie massacre hung over 'Interview' decision

Dec 19, 2014

When a group claiming credit for the hacking of Sony Pictures Entertainment threated violence against theaters showing "The Interview" earlier this week, the fate of the movie's big-screen life was all but ...

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.