Global TV revenues will rise year-over-year in the coming quarter for the first time in six quarters, research firm DisplaySearch said.
The firm predicts total TV shipments will rise from 205 million units in 2009 to 218 million units in 2010, up 6%. That would reverse 2009’s shipment decline of 1%. The firm credits demand in North America, Japan and Western Europe, as well as accelerating demand from emerging markets for flat panel TVs.
“China is a hot growth engine for the global flat panel TV market as the transition from CRT to LCD and plasma TVs continues to drive market growth,” company spokesman said. :Government stimulus activity is having a positive effect on demand for flat panel TVs in both China and Japan, while several upcoming analog-to-digital broadcast changes in 2010 are likely to increase demand in Western Europe for digital TVs. Meanwhile, large price declines in North America have been driving strong unit demand, especially for 19” to 32” sizes.”
Global average selling prices for all TV technologies are expected to fall 9% in 2009, the first year of declining average prices since the flat panel TV transition began. The large decline in average pricing, a result of both high flat panel market share and price erosion, has boosted demand for TVs on a unit basis, but not enough to prevent a 10% decline in global TV revenues, from $112 billion to $101 billion, DisplaySearch said. However, global price erosion is expected to lessen in 2010 which, when combined with an increased unit demand outlook, will return some positive revenue growth to the industry.
The worldwide CRT TV shipment forecast for 2010 was downgraded to 32 million units on declining demand and waning supply of core components. The forecast for plasma TVs was slightly upgraded to 14.6 million units, based on increased demand expected in China from new local production.