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Tv Technology

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Essay title: Tv Technology

By region. China and North America drove unit growth, up 17% and 8% Y/Y, respectively, to 9.4M and 9.3M units. This rapid growth more than offset weakness in Europe and Japan, which were down 16% and 7% Y/Y due to unrealized World Cup expectations and channel inventory concerns. Every TV technology experienced Q/Q declines in Europe and Japan.

Technologies

Plasma TVs were down in all regions -- except North America, which was up 38% Q/Q--leading to 4% Q/Q and 45% Y/Y growth to 2.3M units. Despite the growth, plasma TV units and revenues lost share vs. other technologies in Q2'06. While falling from 60% to 55% of the 40-44" category on loss of share to LCDs, plasma TVs rose from 47% to 50% of 50-54" TV shipments on share gains from microdisplay RPTVs.

Panasonic led the global plasma TV market with a 33% unit share followed by LGE on a unit basis and Samsung on a revenue basis. Interestingly, significant weakness in Europe caused plasma TV brands to increase their reliance on the North American market leading to channel inventory growth and significant Q4'06 price reductions.

LCD TVs were up 15% Q/Q and 99% Y/Y to 10.8M units and enjoyed 66% growth in China and 35% growth in North America, offsetting 5% and 2% declines in Europe and Japan. LCD TVs overtook CRT TVs for the first time in Europe in Q3'06, and LCD TVs are expected to overtake CRT TVs for the first time in the North American market in Q4'06.

Samsung gained unit and revenue share for the fifth consecutive quarter and earned the top position in global LCD TV units and revenues. Sharp regained the #2 position on a unit basis on increased panel procurement from Taiwan.

With LCDs up 35% and PDPs up 38% sequentially, the North American retail channel is getting stuffed with flat panel TVs, which is accelerating Q4'06 pricing pressure and intensifying LCD/PDP competition. 37" and 40-42" LCD and plasma TV volume weighted

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