Ultra HD TV Share ‘Hasn’t Budged Much’ Since September, Says IHS Report

Ultra HD TVs gained a point of global TV market share in May, to five percent from 4 percent in April, 3 percent in March and 2 percent in February, said IHS, which said “pricing in the market remains too high” for Ultra HD TV to gain “meaningful share.” Despite the incremental growth among the top 13 LCD TV brands over the four-month period, Ultra HD TV “growth hasn’t budged much” since September when market share was 2 percent, IHS said. The top 13 brands account for more than 90 percent of overall Ultra HD LCD TV shipments and more than 75 percent of all LCD TV shipments, it said.

For 2014, Ultra HD TV shipments are projected to jump to 14.5 million units, IHS said, from 2 million last year, as brands, particularly Chinese brands, turn to “aggressive marketing efforts” to accompany new models during the second half, said Jusy Hong, principal analyst for consumer devices.

The China market, in particular, has seen slow expansion of Ultra HD TV, where TV share is below 10 percent, “despite vigorous promotion by brands” to make prices more accessible, Hong said. The trend extends globally where “high UHD TV pricing acts as a barrier for wider acceptance,” he said. China’s biggest sales season, around the Golden Week holiday in early October, is expected to generate aggressive promotions to boost Ultra HD TV penetration, Hong said.

TCL and Seiki have already positioned their Ultra HD TV lineups for a price-charged second half in the U.S. TCL announced the starting price for the 40-inch model in the UE5700 series at $499 (CED June 9 p8), half the price of its leader Ultra HD model a year ago. Walmart is selling Seiki’s 65-inch SE65UY04 for $999, a $1,000 discount, we found Wednesday.

Samsung and LG were 46 percent of total Ultra HD TV shipments in May, while six Chinese suppliers -- Changhong, Haier, Hisense, Konka, Skyworth and TCL -- were 45 percent, Hong said. Chinese TV brands are popular in their own country but not overseas, and their challenge in increasing global market share “is to boost quality,” Hong said, and “not just rely on lower pricing.” Ultra HD TV shipments were 9 percent of total LCD TV shipments for Chinese brands in May, compared with 5 percent for South Korean makers and 2 percent for Japanese TV manufacturers, IHS said.

UHD TVs are considered part of the LCD TV market now, though Hong said Ultra HD OLED TV models are due on the market by year-end. John Taylor, LG vice president-public affairs and communications, reaffirmed his company’s commitment to Ultra HD OLED, which LG announced at CES, and said the company will ship 65- and 75-inch OLED Ultra HD models in the U.S. this fall. Pricing hasn’t been announced. Samsung didn’t immediately respond to questions about its OLED Ultra HD plans. Veronica Thayer, IHS analyst, told us IHS expects the price of a 65-inch OLED Ultra HD TV to be four to five times that of an equivalent LED-lit LCD TV in the U.S.

Overall in flat-panel TVs, shipments totaled 18.1 million units in May, a 6.4 percent drop from April but up 7 percent year over year, IHS said. With Panasonic having abandoned plasma TV panel production at the end of last year, plasma panels accounted for just 708,000 of the 17.4 million total LCD TVs shipped, IHS said. At the same time, plasma sets experienced higher-than-expected sales during first half 2014 because of promotions tied to the FIFA World Cup, but shipments were expected to “fall sharply” following the end of the international soccer competition earlier this month.