CHARLOTTE, N.C. – The U.S. LCD TV category saw a “traditional post-holiday decline” in the first quarter of 2014, with overall sales down 46 percent from the preceding quarter (Q4 2013), but registered a slight bump up in sales from the same period in 2013, according to new data released by Quixel Research.
The study said “the underlying strength of the [TV] category was upheld with volume up +3 percent compared to the year-ago period (Q1 2013).”
Meanwhile, overall U.S. LCD TV factory revenue was down 39 percent quarter to quarter to $3.36 billion for the period, Quixel said.
But comparing the periods year over year, factory dollar value was up 2 percent, supported by the growth of 40-inch and larger LCD TV sales.
“We already saw a significant average selling price (ASP) decline for 40-42-inch in the first quarter (Q1) of 2014 – down over nearly 15 percent – which is not typical for Q4 to Q1. The panel and brand manufacturers have been making price adjustments to be more competitive and move consumers up to larger sizes,” said Jill Turcic, Quixel senior analyst and managing director. “Forty and 42-inch volume rose to nearly 1 million units in Q1 2014 or 35 percent more than Q1 2013.”
“Forty- and 42-inch may be the next 32-inch TV,” said Turcic, explaining that sales of 40- and 42-inch models are moving to overtake 32 inches as the top screensize volume segment. “The 40- and 42-inch LCD TVs have been taking a backseat to all the hoopla around 50-inch and larger screen sizes in the past 12 months. However, the panel manufacturers and branders got aggressive in the first quarter and ASPs plummeted. We are expecting big volume increases this year for the 40- to 42-inch segment.”
Meanwhile, the research firm said Ultra HD TV sales volume was flat in the period compared with Q4 2013, but revenue declined 16 percent to $134 million as manufacturers lowered prices for many models.
Meanwhile, typical Black Friday promotional screen sizes saw the biggest volume declines quarter to quarter in Q1 2014, with 60-inch and 50-inch screen sizes down significantly, Turcic said.
“However, a strong average selling price decline supported double-digit volume increases for the 40-, 55- and 65-inch screen sizes. Volume was up 15 percent year over year for the 40-41-inch screen size segment,” she added.
