EL SEGUNDO, CA – Rapid price reductions are boosting sales of large-sized LCD TVs, says iSuppli, which increased its forecast for shipments in 2007.

The research firm predicts 75.2 million LCD-TV panels will be shipped this year, up 42.7% from 52.7 million in 2006. This represents a three-point increase over iSuppli’s previous forecast, issued in the fourth quarter of 2006.

“This strong growth in 2007 will pave the way for LCD-TV panel shipments to exceed 100 million units in 2008 and then grow to 171.6 million units by 2011,” said Sweta Dash, director of LCD and projection research at iSuppli. “By that time, LCD-TVs will dominate the market, accounting for 65% of all television unit shipments worldwide.”
 
The price of a 32" LCD-TV panel is expected to fall by 17% in the first half of 2007 compared to the fourth quarter. Panel price declines are running ahead of cost reductions, as suppliers battle for market share by flooding the channel with product. This has resulted in declining margins and profitability, according to iSuppli.

In 2006, LCD-TV panel shipments rose 95.8%, iSuppli estimates. Shipments grew 17% in the fourth quarter over the third. In contrast, shipments grew by 37% during the same period in 2005.

Weaker growth in the fourth quarter, combined with start of the slow season in the first half of 2007, resulted in an inventory pileup in December, followed by significant price reductions in January and February. These reductions are expected to persist through the first quarter and into the second, according to the firm.
 
 

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