Digital, HD and 1080p TV Brand Shares and Forecasts Available in DisplaySearch Quarterly Global TV Report: Samsung Was #1 in HD and Total TV Revenues

DisplaySearch: The TV market is rapidly migrating to digital and 720p/1080i HDTVs with even higher resolution 1080p TVs now becoming widely available due to their improved performance and ever narrowing price gap. However, penetration varies significantly by region and technology. This report provides digital, HD and 1080p TV shipments by technology, region and brand while also projecting their costs, prices and shipments through Q4'10. It is a must-have report for everyone in the TV supply chain. In Q2'06, global digital TV shipments rose 22% Q/Q to 15.5M units, accounting for 37% of TV units and 80% of TV revenues, up from 29% of units and 74% of revenues in Q1’06. North America and Europe each accounted for slightly over 5M or 34% of all digital TVs shipped. Japan had the highest digital TV penetration in Q2'06 with digital TVs accounting for 77% of all TVs shipped into that market, up from 66% in Q1’06, and 97% of revenues, up from 94%. North America is expected to lead in digital TV penetration from 2007 as a result of its digital tuner mandate. By technology, LCDs rose from 58% to 61% of digital TVs shipped in Q2'06 with digital CRTs falling from a 22% to a 19% share of all digital TVs. By brand, Samsung led in digital TV shipments with a 17.4% share, up slightly from 17.1% in Q1'06. Globally, Samsung was #1 in digital CRTs, #2 in digital CRT RPTVs, LCDs, MD RPTVs and #3 in PDPs. HDTVs rose 29% Q/Q to 11.2M units, accounting for 27% of all TVs shipped in Q2'06. All regions experienced significant growth in HD penetration. Japan's HD penetration surged from 50% to 64% to lead in HD penetration. However, Europe actually led in HDTV shipments at over 4M due to the size of the European market and their preference for flat panel TVs, which are predominantly HD. As more HD programming becomes available and Europeans remain focused on flat panel TVs, Europe is expected to lead in HD shipments throughout the forecast. In terms of HD shipments by technology, LCDs led with 7.7M, up 34%, which amounted to a 68% share of all Q2'06 HDTVs, up from 66%. Plasma TVs had the fastest HD growth, up 60% to over 1.5M units. 70% of all plasma TVs were HD in Q2'06, up from 56% in Q1'06. HD penetration in PDPs is expected to be higher than in LCDs from Q4'07 due to its large size emphasis. In terms of brand share worldwide, Samsung remained #1 in HD unit and revenue share at 22% and 18% respectively followed by Sony at 12% and 14% respectively. By region on a unit basis, Hisense led in China, Sharp led in Japan and Samsung led in Europe, North America and ROW. By technology, Samsung led in CRTs and LCDs, Panasonic led in PDPs, TTE led in CRT RPTVs and Sony led in MD RPTVs. 1080p TV shipments for all TV technologies rose 42% Q/Q and over 1000% Y/Y to 331K units and a 1% share of the global TV market. On a revenue basis, 1080p TVs rose 36% Q/Q and 672% Y/Y to $1.1B and a 5% share. Japan led the way in 1080p penetration with 1080p TVs accounting for 17% of their Q2'06 TV revenues and 5% of unit shipments followed by North America with 1080p sets accounting for 7% of revenues and 2% of units. While Japan leads in 1080p penetration, North America led in 1080p shipments at over 160K units or a 49% share followed by Japan at over 100K units and a 32% share. By technology, LCDs rose from 53% to 58% of 1080p unit shipments with DLP overtaking LCOS with a 23% to 17% advantage and PDPs accounting for 1%. By brand on a unit basis worldwide, Sharp overtook Sony on the strength of its 37 and 45 LCD TV shipments and held a 27% share with Sony at 17%. On a revenue basis, Sony led with a 27% to 19% advantage due to its focus on larger sizes. By region on a unit basis, Sharp led in Japan, Sony was #1 in North America, Philips led in Europe, Hisense led in China and Samsung led in ROW. Total TV shipments rose 7% Y/Y to 42.3M units supported by the World Cup, lower flat panel TV prices and increased HD programming and content. Europe, Japan and North America all gained share in Q2’06 at the expense of China and ROW as the CRT replacement accelerates as flat panel TV prices become increasingly attractive. With units, ASPs and average diagonal all rising, revenues were up 45% Y/Y to $23.8B. Q2'06 is expected to be the peak quarter for Y/Y revenue growth as flat panel price reductions continue and begins to slow. In Q2'06, LCD TV shipments were up 135% with plasma TVs up 95%. Due to the success of larger LCDs and plasma TVs, 40-44 TVs became the #1 category on a revenue basis for the first time with a 23% share with 40 and larger TVs accounting for 38% of revenues, up from 34%. In terms of worldwide TV shipments and revenues by supplier, LGE overtook TTE to become #1 on a unit basis on 24% Q/Q growth with double-digit growth earned in North America, Europe and ROW. Samsung moved back to #2 on share gains in CRTs, LCDs and MD RPTVs through the successful launch of its new product line. The top five brands grew their share from 40% to 44% on a unit basis and from 48% to 53% on a revenue basis. The Korean brands each earned over 10% unit share for the first time, appearing to be the largest beneficiaries of the World Cup. Samsung remained #1 on a revenue basis growing its share to 15% on strong unit growth and a high HD share. It was in the top three in all technologies. By technology on a revenue basis, Sony remained #1 in LCD TVs and MD RPTVs, Panasonic remained #1 in PDP TVs, Samsung overtook TTE in CRTs, and TTE remained #1 in CRT RPTVs.

Table 1: Worldwide TV Unit Share

Q2'06 Rank	Brand	Q1'06 Share	Q2'06 Share
1	LGE	8.9%	11.4%
2	Samsung	8.9%	10.6%
3	TTE	10.1%	9.0%
4	Philips	6.6%	7.1%
5	Sony	5.4%	6.3%
	Others	60.1%	55.6%
	Total	100%	100%

Table 2: Worldwide TV Revenue Share

Q2'06 Rank	Brand	Q1'06 Share	Q2'06 Share
1	Samsung	13.1%	14.6%
2	Sony	10.8%	11.0%
3	LGE	8.1%	9.8%
4	Panasonic	7.2%	9.5%
5	Philips	8.8%	8.6%
	Others	52.0%	46.6%
	Total	100.0%	100.0%

Also added to the latest issue were digital and HD CRT cost models and more granularity on MD RPTV costs. For more information on DisplaySearch's Quarterly Global TV Shipment and Forecast Report Publ 20060926