PORTLAND, ORE. –
A new report on second-quarter and first-half 2011 U.S. LCD TV sales from Quixel Research said the category continued to struggle under the weight of the economic malaise, with relative bargain pricing driving consumer LCD TV purchases most of the period.
The story was much the same in larger area display screen-size segments of both plasma and LCD TV displays, with consumers gravitating toward bargain prices offered by 40-inch-and-larger plasma and CCFL-backlit LCD TV models.
The just-released Quixel “Q2 2011 LCD TV Market Review” showed mostly flat unit sales growth, with revenue in decline during the two previous quarters.
Increased unit sales of value-priced smaller-screensize models, and also several new large-screen-size models, supported a 4 percent overall unit increase for the LCD TV category from Q1 2011 to Q2 2011, Quixel said.
Year-to-year volume results were down 2 percent, while volume was up 3 percent when comparing firsthalf 2010 to first-half 2011.
“The LCD TV category posted double-digit increases for the 19-, 22- and 32-inch screen-size segments in the second quarter,” stated Tamaryn Pratt, Quixel Research’s principal. “We also saw price outstrip brand, as consumers snapped up bargain 32-inch models from tier-two and three brands that were priced under $300.”
In Q2 2011, more than a third of the overall LCD TV market was in price segments less than $300, compared with 25 percent in Q1 2011 and 20 percent in Q2 2010.
In addition to increased volume in low-priced smaller- sized LCD TVs, significant declines in many largescreen average selling prices contributed to the 3 percent decline in overall value for Q2 2011, with revenues falling to $3.8 billion in Q2 2011 compared with $3.9 billion in Q1 2011, according to the report.
Annually, LCD TV values couldn’t keep pace, or fell 16 percent from Q2 2010 to Q2 2011.
First-half 2011 revenue results were also short when compared with first half 2010, and declined 10 percent.
Quixel Research said it is now forecasting continued soft market conditions in the LCD TV category in the U.S. for the balance of 2011 and beyond.
Quixel’s unit projections call for LCD TV sales to remain flat in the near turn, with only very modest growth in 2013 and 2014.
In contrast, the plasma TV category saw continued growth in the second quarter as consumers gravitated to the better bargains for larger screen sizes the category had to offer in the period.
Quixel’s “Q2 2011 USA Large Area Display Report (LAD)” showed first-half 2011 plasma TV unit sales up 17 percent when compared with first half 2010.
“It is the great mix of value, brand and design that makes the recipe for the plasma TV category work for consumers,” Pratt said. “We’re in an industry that continuously pushes techs and specs, while today consumers are primarily interested in value for their money.”
Similarly, Pratt said CCLF-backlit LCD TV models saw growth in several larger-than-40-inch screen-size segments.
Overall volume for the LAD category was down 3 percent from Q1 2011 to Q2 2011 and down 2 percent year to year.
Comparing first-half 2011 to first-half 2010, the LAD category was up 6 percent overall. The LCD TV category was down 2 percent quarter to quarter, but up 3 percent first-half 2011 over first-half 2010.
LAD revenues declined 5 percent in Q2 2011 to $3.4 billion compared with $3.6 billion in the first quarter of 2011.
Year-to-year the LAD market saw value fall 12 percent, said Pratt.
The push to larger and often higher resolution screen sized models supported the 3 percent revenue increase for the plasma TV category from Q1 2011 to Q2 2011.
Year to year, the plasma TV category posted a 3 percent decline in revenues. LCD TV value results for the 40-inchand- larger segments were down 5 percent and 14 percent quarter to quarter and year to year, respectively.
The plasma TV category also outpaced the other technology segments in first half 2011 value growth, as plasma sales rose 6 percent when comparing first-half 2011 with first-half 2010, while the 40-inch-and-larger LCD TV segments were down 9 percent for the same time period.
Quixel Research is forecasting LAD growth for 2011 and 2012.
For more detailed information, the reports can be purchased from Quixel Research by contacting