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Q4 Plasma Unit Sales Up, Revenue Down

Sales of plasma display panel (PDP) TVs in the United States hit “an all-time quarterly high” in fourth quarter of 2007, as overall sales grew 5 percent from the same period a year earlier, according to a new PDP TV Market Review issued by Quixel Research.

However, overall revenue for the PDP category was down sharply in 2007 as price pressure from the LCD TV category compressed average selling prices. In addition, Quixel noted that “there were very few 1080p models to support growth.”

Total value for the PDP category fell 19 percent from 2006 to 2007, or declined from $7.1 billion, to $5.7 billion, in sell-in dollars. However, from Q3 2007 to Q4 2007 revenues increased 22 percent as 50-inch outsold 42-inch and 1080p models trickled into the market, Quixel said.

The total value of the advanced TV market in the United States was worth almost $28.7 billion in 2007 in sell-in revenue. The plasma TV segment represented 20 percent of that market, Quixel said.

“PDP prices were very competitive in the fourth quarter and consumers responded. We saw unit sales increase 36 percent from Q3 to Q4 and there was a good mix of both 42-inch and 50-inch models,” stated Tamaryn Pratt, Quixel Research’s principal. “Unit sales of 50-inch models did outpace sales of 42-inch models again in the fourth quarter, as well as in full-year 2007, but well-priced seasonal models pushed 42-inch sales up almost 30 percent quarter-to-quarter.”

Total volume for the 50- to 59-inch segment was up 47 percent from the third quarter 2007 to the fourth quarter 2007 and up 53 percent from 2006 to 2007, while the 40- to 49-inch segment saw unit volume decline 22 percent from 2006 to 2007, Quixel reported.