DisplaySearch: LCD-TV Revenue Expected to Fall for the First Time in LCD-TV History

AUSTIN, TEXAS – For the first time since the technology debuted in 2000, revenues for LCD TVs are expected to be lower year over year in 2009, according to the latest research from DisplaySearch. The market-research firm announced on December 17, 2008, that it was revising its TV market forecast for 2009 to include the latest projections.

DisplaySearch is forecasting that LCD-TV revenues will drop 16% in 2009 to $64 billion, and total TV revenues will fall 18% to $88 billion. DisplaySearch expects that 2009 will be the most difficult year yet for the TV industry and supply chain, citing key factors such as reductions in forecasted TV prices and revised forecasts for Y/Y shipment growth for LCD and PDP TVs in 2009, which are projected to fall 7% and 6%, respectively, when compared to 2008.

Overall shipments of TVs are expected to increase, just not as fast as in previous years. For example, the LCD-TV market is expected to ship 102.2 million units in 2008, which would be a 29% increase from 2007 (this marks a reduction of 3.6 million from DisplaySearch's Q3'08 forecast for 2008). But in 2009, the LCD-TV market is forecast to ship 119.9 million units, which would be an increase of just 17% compared to the previous year (this figure has been reduced by 11.5 million units from the Q3'08 forecast for 2009). Additionally, unit growth in developed regions such as Japan, North America, and Western Europe will be just 2% year over year, largely due to the impact of the worldwide economic crisis. DisplaySearch forecasts that LCD-TV growth in emerging regions will be 45% in 2009, which is robust but still lower than the 68% growth in 2008.

"The TFT-LCD industry is going through the hardest time in a decade, as shipments and revenues dramatically decline," commentedDavid Hsieh, Vice President of DisplaySearch. "To cope with the weak demand, capacity utilization for Taiwanese panel manufacturers is below 60%, Korean manufacturers are reducing utilization to less than 80%, and Japanese manufacturers are re-adjusting fab allocations.

"Currently, most panel prices are below cash cost, and some lower than the BOM (Bill of Materials) cost. However, the biggest challenge may be in Q1'09, since downstream demand is unclear as long as panel prices continue to fall. The industry will need to take additional steps to reduce capacity utilization, since falling panel prices are not stimulating demand under the current economic conditions. Continuing to reduce panel prices will cause continued pain for the whole supply chain, including panel makers, materials makers, and set makers."

Plasma (PDP) TV shipments are expected to grow 24% to 13.9 million in 2008, largely unchanged from the Q3'08 forecast. This segment is expected to grow 5% year over year in 2009 to 14.6 million units, a 5% reduction from the Q3'08 forecast for 2009. This is primarily due to the rapid decline in prices of 32-in. LCD TVs. Another factor is the smaller number of PDP players in the market as a result of aggressive pricing from the top PDP-TV brands.

DisplaySearch's total global TV forecast is 206.4 million units in 2008, up 3% from 2007; 2009 shipments are forecast to be 205.3 million units, down 1% Y/Y – the first time in recent memory that there has been a drop in unit shipments. In addition to a reduction of units, the revenue decline in 2009 will affect the TV supply chain in 2009.

— Staff Reports

LG Display Unveils "Trumotion 480Hz" LCD-TV Panel Featuring 4-msec Motion-Picture Response Time

SEOUL, KOREA – LG Display announced December 30, 2008, that it has developed what it is terming the world's first "Trumotion 480Hz" LCD-TV panel (pictured), which has an 480-Hz refresh rate, accelerating the advent of ultra-high-speed images without sacrificing picture quality.

According to a company press release, LG Display's "scanning backlight" enables the backlight to be repeatedly turned on and off to reduce motion blur. When combined with the company's 240-Hz technology, the display can refresh 480 images per second.

In addition, LG Display's "Trumotion 480Hz" display boasts a motion-picture response time (MPRT) of 4-msec, eliminating motion blur for fast-moving images and enabling a realistic, crystal-clear picture.

"The world's first Trumotion 480Hz LCD-TV panel is planned to hit the market in the second half of 2009. LG Display will provide its customers with unique, high-end products while delivering crisp picture quality for fast-moving images." noted Eddie Yeo, Executive Vice President and Head of LG Display TV Business Unit.

— Staff Repor