Quixel: Q3 DTV Sales Grow

by Greg Tarr -- TWICE, 11/13/2007

Portland, Ore. — Although LCD TVs have been on a roll in recent years, the plasma TV category held its ground in larger screen sizes, according to third-quarter retail sales analysis issued this week from display market research firm Quixel Research.

Meanwhile, microdisplay rear-projection TV sets enjoyed modest sales growth in the 60-inch and larger screen sizes.

For the second quarter in a row, the plasma TV category continued to outpace all other technologies in the 50-inch and above screen sizes, Quixel said, “but in the third quarter 2007, even 42-inch sales showed increases in volume and value.”

Quixel Research’s “Plasma TV Market Review for Q3 2007” revealed that both the 50- to 59-inch and 42- to 49-inch screen size segments showed significant growth from the second quarter of 2007 to third quarter of 2007, up 31 percent and 27 percent in units, respectively.

“There is no question that large-screen LCD TV sales are right at the heels of the plasma category but many consumers still prefer plasma TVs,” stated Tamaryn Pratt, Quixel’s principal. “Putting individual picture quality preferences aside, the top-selling 50-inch PDPs were all under $1,999 in the third quarter, making it the best value for a large-screen flat TV.”

Quarter-to-quarter revenue for the 50- to 59-inch segment was up 33 percent, and rose 26 percent in the 42- to 49-inch segment over the same time period.

Overall, the PDP category was up 25 percent in units from the second quarter 2007 to the third quarter 2007, but down 10 percent year-to-year, Quixel said.

Average selling prices were relatively stable in the period, and kept revenues up quarter-to-quarter as sales topped $1.4 billion in third quarter 2007 compared with $1.1 billion in the second quarter.

However, on a year-to-year basis, the PDP category was down 30 percent in revenues, Quixel said.

The total value of the U.S. advanced TV market accounted for almost $7.5 billion in revenue in the third quarter of 2007 and the plasma TV segment represented more than 20 percent of that market.

In LCD TV, 1080p sales showed major growth in the third quarter of 2007, after several quarters of slowly building momentum.

Quixel’s “LCD TV Market Review for Q3 2007” reveals “explosive growth” in the large-screen LCD TV segments 40 inches and above, with unit sales up 113 percent over the second quarter of 2007.

“Plasma manufacturers have their work cut out for them,” said Pratt. “The LCD TV category has already out sold plasma at 42 inches and is now upping the stakes with 1080p resolution models. The wide availability of 46- and 47-inch 1080p LCD TV models will soon put pressure on 50-inch plasma, where 1080p is not yet widely available.”

Revenue for the 40- to 43-inch 1080p LCD TV segment grew 188 percent quarter-to-quarter topping $1.7 billion. From third quarter of 2006 to third quarter 2007 the segment saw revenue increase 362 percent, Quixel said.

The 40- to 43-inch 1080p LCD TV segment represented 10 percent of the total category’s revenues or up 3 percent quarter to quarter.

Overall unit sales for the LCD TV category were up 29 percent quarter-to-quarter and 73 percent year-to-year.

In value, the LCD TV category generated $5.2 billion in revenue or up 38 percent from Q2 2007 revenues of $3.8 billion. Comparing year-to-year, LCD TV revenues rose 72 percent.

LCD TV represented almost 70 percent of the total advanced TV market. Quixel Research is calling for category volume to triple by 2010.

Both flat-panel TV categories continued to put pressure on microdisplay rear-projection TV sales, although both U.S. unit and revenue results rose in the third quarter of 2007, Quixel said.

The 60-inch and larger screen sizes led the category in overall growth, according to Quixel Research’s “Micro Display Rear Projection Market Review for Third Quarter 2007.”

The study found unit sales for the U.S. microdisplay rear-projection TV (MD RPTV) category were up 8 percent from the second quarter of 2007 with sales of models 55 inches and larger tallying the largest quarter-to-quarter increase.

“While smaller MD RPTVs are no longer competitive in the overall 40-inch and above display space, in the third quarter, the models in the 55-inch and above screen size segments proved meaningful, with those segments increasing 9 percent and 37 percent in units respectively,” said Pratt. “These large-screen models were closing in on half of the volume in Q3 and currently have over half the value.”

Revenue for the 55- to 59-inch segment were up 3 percent from the second quarter 2007 to third quarter 2007, while the 60-inch and above segment saw value grow 37 percent for the same time period, according to Quixel.

Revenue for the category topped $600 million in the third quarter, increasing 13 percent from second quarter 2007 results of $532 million.

Pricing pressure from exploding flat-panel TV sales caused a 56 percent decline in MD RPTV revenue compared with the third quarter of 2006, Quixel said. Year-to-year unit sales were also down, falling 48 percent.

Microdisplay rear-projection set sales accounted for an 8 percent share of the third quarter advanced television market, Quixel said.