Global TV shipments declined for the second straight quarter, falling 8% Y/Y in the seonc quarter of the year, according to NPD DisplaySearch.
The decline in TV shipments started in Q4, 2011 and has continued in 2012, reflecting worsening economic conditions worldwide and slower price erosion, which both affect consumer demand.
Japan has been the hardest hit, with Q2, 2012 shipments plunging 77% Y/Y to less than 1.4 million. In developed markets, TV shipments were down 23% Y/Y, while emerging market growth slowed to 3% from double-digit growth at the end of 2011.
China, a strong driver of emerging market growth, rebounded from a Q1’12 decrease, growing 6% in the second quarter. 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,” noted Paul Gagnon, Director, North American TV Research for NPD DisplaySearch, in a statement.
“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 Y/Y for the second quarter in a row, falling 2%, but demand for LCD TVs of 40” and larger is strong, with second quarter shipments rising more than 15% Y/Y. Advanced features within the LCD TV market also showed improvement, as LED, high frame rate, and 3D all increased in share during Q2’12. Meanwhile, plasma TV shipments fell for the sixth straight quarter, down by more than 20%.
Samsung’s global flat-panel TV revenue share reached a new high, growing to more than 28% and leading all other flat-panel TV makers by a significant margin. The top three Japanese brands—Sony, Panasonic, and Sharp—were severely impacted by the drop in demand in Japan, so each saw global flat-panel TV revenues decline more than 30% Y/Y. Globally, Chinese brands grew 14% Y/Y in the Q2, 2012, while Korean brands grew by 9%.