PORTLAND, ORE. –
Smaller-screen LCD TVs, no-frills big-screen LCD TVs and 3D front projectors were among segment growth leaders in an otherwise stagnant third-quarter U.S. TV market, according to new reports on the period from Quixel Research.
Growth in the 32-inch and 60-inchand- larger LCD TV segments helped the overall LCD TV category post a 7 percent third-quarter dollar volume increase over Q2 2011 to $4.1 billion. But year to year, falling average selling prices cratered hopes for revenue increases, causing LCD TV value to drop 7 percent from Q3 2010.
For 2011 and beyond, Quixel expects the market to be flat for the U.S. LCD TV category. The category will see flat nearterm growth with very modest growth in 2013 and 2014, at which point the category will start the first round in the flat-TV replacement cycle, Quixel said.
For Q3 2011, Quixel said the 32-inch screen size segment continued to outpace all other TV segments on a quarterto- quarter basis.
The market research firm’s new “Q3 2011 LCD TV Market Review” showed 32-inch LCD TV volume up 39 percent from the second quarter of 2011 and also up 8 percent over Q3 2010.
The 32-inch segment supported overall growth for the LCD TV category which increased 13 percent over Q2 2011 and 2 percent from Q3 2010.
“Undoubtedly the troubled economy was driving the growth of 32-inch LCD TVs, which were already the largest screen-size segment, and now represent almost 40 percent of the market in volume,” stated Tamaryn Pratt, Quixel Research’s principal.
Models with 720p HD resolution and CCFL backlighting gained ground in the quarter. The 32-inch segment also posted double-digit revenue growth or increased almost 30 percent in dollars from the second quarter of this year.
When it came to big-screen LCD TVs, the music was as not as beautiful as consumers largely opted out of highermargined models with all the bells and whistles in Q3.
Quixel Research’s “Q3 2011 USA Large Area Display Report” showed both bargain 40- to 42-inch LCD TVs and value-priced 60-inch-and-larger LCD TVs drove the largearea- display (LAD) category’s 4 percent unit increase over Q2 2011 and 2 percent increase over Q3 2010.
“LCD models in the 40- to 42-inch range showed volume increases of about 25 percent quarter to quarter and 20 percent year over year. Almost 75 percent of the 40-inch and 42-inch LCD TV volume sold was CCFL in Q3 2011, with an average selling price below $500,” stated Pratt. “For those folks with more money to spend in Q3, 60-inch and 70-inch models were widely available at ridiculously great values. In all these fast-moving screen sizes, features like 3D and connected TV declined as manufacturers looked to reduce costs or differentiate within a channel.”
Bargains and big screens helped LAD values post $3.4 billion in factory dollar volume in Q3 2011, which was flat compared with the prior quarter.
But average selling prices declined and caused the LAD category value to slip 7 percent, compared with $3.6 billion in Q3 2010.
Large LCD TV value was up 4 percent from Q2 2011 and 3 percent from Q3 2010.
Meanwhile, the numerous specials for LCD TVs undercut plasma TVs, forcing unit sales in the category to decline 14 percent. Dollar volume declined 20 percent from Q2 2011 and 32 percent in both unit and dollar volume from Q3 2010.
While down 16 percent from Q2 2011, microdisplay rear-projection TV unit volume in models 70 inches and larger almost doubled from the same time period last year.
In front projectors, 3D made most of the noise in the third quarter, Quixel observed. The firm’s “USA Home Theater and Entertainment Front Projector Market Review” for Q3 2011 showed U.S. unit sales of 3D projectors increased 121 percent from Q2 2011, and represented 16 percent of the total home projection category.
“Expect to see 3D in more than half of the projectors by this time next year,” stated Pratt.
Revenue for 3D home projectors grew 14 percent over the second quarter of 2011, and higher still than dollar volume from the third quarter of 2010, due mostly to a veritable flood of low-cost 3D projector market introductions.
The overall home-theater front-projector business saw a dip in volume quarter to quarter, falling 7 percent from the second quarter, but grew 2 percent from the third quarter of 2010.
Revenue for the category dropped 4 percent to $74 million in Q3 2011. Annually however, the increased volume of midrange and higher-priced products supported a 21 percent increase in revenues, said Pratt.
To purchase the full reports, contact Quixel Research at