Strong Q3 in North America Prompts DisplaySearch to Upgrade Its LCD TV Shipment Forecast

DisplaySearch upgraded its 2014 estimate and 2015 forecast on global LCD TV unit shipment increases by about two percentage points for each year, the research firm said in a Wednesday announcement. “After a year of weak growth for the LCD TV industry in 2013, worldwide shipment growth has accelerated every quarter in 2014,” with total units rising more than 10 percent in Q3, DisplaySearch said. DisplaySearch now estimates the industry shipped 223 million LCD TV sets in 2014, a 7 percent gain from the roughly 208 million shipped in 2013, it said. It also raised its 2015 forecast to a 7 percent rise in unit shipments to 239 million. In a forecast released earlier in 2014, DisplaySearch projected a 5 percent gain in 2014 unit shipments to about 219 million and another 5 percent gain in 2015 shipments to about 230 million. Factory shipments of LCD TVs in Q3 “were stronger than expected in several regions, but especially in North America and Asia-Pacific,” said Paul Gagnon, DisplaySearch director-TV research, in a statement. “Growth in these regions is driven by a new wave of replacement activity, with North American consumers replacing older flat-panel TVs and consumers in India and other Asia-Pacific countries replacing CRT TVs.” In 2014, consumers continued to trade up to larger screen sizes, increasing the average size of LCD TV shipments 5 percent to 39 inches, which is more than 1.5 inches larger than the 2013, DisplaySearch said. “This increase in average size, combined with stronger unit growth, is fueling renewed investment in LCD panel production capacity. Larger sizes have also contributed to revenue growth and have helped to stabilize overall industry prices, on a volume-weighted basis. The shift to larger sizes has also resulted in strong demand for 4K LCD TVs, which are expected to grow more than 50 percent, reaching more than 32 million units in 2015.” Year-over-year LCD TV shipments to retailers in North America increased nearly 24 percent in Q3, the company said. “Very strong growth in North America in recent quarters warrants careful observation, to ensure an inventory glut doesn’t materialize, due to overzealous buying and selling at the manufacturer to retailer level,” Gagnon said. “A strong holiday season is needed to avoid an inventory hangover in early 2015.”