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Analysts: Q2 TV Sales Performances Vary

New York

– Second-quarter demand for flat-panel TV shipments
slowed for some smaller-screen TV segments but showed signs
of growth in key 40-inch and larger sizes, according to reports
from Quixel Research, The NPD Group and iSuppli.

Overall, the factory unit sales of the LCD TV category increased
16 percent from Q1 2010 to Q2 2010 but posted
a 5 percent decline from Q2 2009 to Q2 2010, according to
Quixel Research.

The LCD TV dollars volume was also up Q1 2010 to Q2 2010,
topping $4.5 billion, compared with $4.1 billion in Q1 2010.

But Quixel said its outlook TV sales for full year 2010 and beyond
is still strong, with forecasts showing growth through 2013.

Quixel Research, said price conscious consumers gravitated
large area displays, particularly value 40- and 42-inch
plasma and LCD TV models.

Unit sales of large area displays measuring 40 to 46 inches
grew 30 percent from Q1 2010 to Q2 2010, which was
more than double any other screen-size segment for the period,
Quixel said.

Year-to-year volumes for the segment were up 9 percent.

Quixel said consumers found greater value in basic feature
sets at the smaller end of the large-area-display segment, although
the firm also reported a significant increase in LCD TV
models with step-up LED backlighting and built-in Internet capabilities.

The 40- and 42-inch flat-TV sales supported a 6-point unit
share gain for the 40-inch to 46-inch segment quarter to quarter,
accounting for almost half of the total large-area-display segment, Quixel found.

Plasma TV sales supported the overall 40- to
42-inch results offering strong value, particularly
for 720p HD models.

Unit volume of 720p plasma TVs was up 79 percent
quarter to quarter and up 25 percent year to year.

For LCD, 40- to 42-inch models accounted for
50 percent of the Q2 LCD TV category in units for
a share gain of 6 points. Lower-refresh-rate CCFL
models and new entry LED-LCD TV models accounted
for most of the volume growth quarter to
quarter, Quixel said.

Meanwhile, sales of LED-based LCD TVs accounted
for most of the category growth in the
second quarter of 2010, according to the firm.

Volumes for the LED segment rose 105 percent
from Q1 2010 to Q2 2010, and 875 percent from
Q2 2009 to Q2 2010. Comparatively, CCFLbased
LCD TVs were up only 3 percent from Q1
2010 to Q2 2010, and they declined 25 percent
from Q2 2009 to Q2 2010, according to Quixel.

The NPD Group said TV sales to consumers of
smaller-screen TVs slowed in June as shoppers hesitated
to buy while exploring bigger-screen models.

The firm said June sales of 19- to 37-inch flatpanel
TVs in the U.S. dropped 21 percent year over
year, which was attributed in part to the so-called
analog TV cutoff last year, which made sales artificially
high, particularly for smaller-screen products.

Hardest hit in June were the 19- and 26-inch
LCD TV sizes, which registered declines of 49
percent and 38 percent, respectively, NPD said.

Meanwhile, sales of larger-screen TVs showed
signs of growth as consumer interest rose for models
with Internet connections, LED backlighting
and 3D capability, according to NPD.

Sales of flat-panel TVs 40 to 65 inches grew
26 percent in June compared with the prior year.
Some of the strongest growth came from the larger
screen sizes as consumers traded up. The 55-,
60-, 63- and 65-inch flat panels all experienced triple-
digit growth for the month, according to NPD.

Large declines in average prices contributed to
the growth in sales of the 42-, 46-, 50- and 58-
inch flat-panel TV screen sizes, NPD said of the
June period.

In July, prices of LCD sets rose on the introduction
of new, more advanced models and reduced
promotional price-cutting for older goods, according
to an iSuppli display market report.

The average retail price in July for an LCD TV
in the United States was $1,136, up 7.2 percent
from $1,060 in June, the highest rate of increase
in at least a year, iSuppli said.

The price also was up 2.8 percent from $1,104
in July 2009.

Riddhi Patel, iSuppli television systems director,
said more than 20 new LCD models were added
in the month to each of the size ranges, with the
majority of the models adding advanced feature
sets and higher price points. As a result, sellers
held back from cutting prices on older goods,
which were already well below the newer goods.