Strong first-quarter demand for large-screen liquid crystal display (LCD) televisions worldwide has given a much-needed boost to the industry, but consolidation still looms for panel makers, industry experts said.
LCD television sales rose 114 per cent year-on-year in the first quarter to US$8.8billion, as 32 per cent of revenue was generated by 37-inch and larger models, market research firm DisplaySearch said.
The volume of shipments jumped 135 per cent year-on-year to 7.4 million units, with 14 per cent of the total consisting of large-format LCD TVs.
All geographical regions enjoyed at least 116 per cent year-on-year growth except Japan, which increased just 35 per cent. China and Europe continued to outpace North America and Japan.
For panel makers, hurt by a supply glut in their industry, the value of large LCD TVs was up 58per cent from a year ago to the year prior, thanks to hefty demand.
By revenue, the top five LCD TV brands worldwide were Sony, Samsung Electronics, Sharp, Philips/Magnavox and LG Electronics. These firms accounted for 54 per cent of total sales in the first quarter. In terms of unit shipments, the top five brands controlled 50 per cent of the market.
Tracking new data, DisplaySearch vice-president Yoshio Tamura said: 'In the second quarter, margins on 37-inch TVs are the highest at 7 per cent, followed by 40-inch models at 4 per cent and 32-inch at 3 per cent.'