It’s a bad time to be in the TV business – or at least it is if you happen to be selling the damn things. A new report from IHS iSuppli shows that TV shipments in the world’s most important market – the USA – have fallen by a massive 11% in the first quarter of 2013, compared to the same quarter last year.
|IHS iSuppli reports sharp fall in US TV shipments|
Not surprisingly, with demand falling the prices for TV sets have been going up to compensate. IHS iSuppli reports that retail prices rose by 3% during the first quarter. This could be due to the fact that manufacturers are seeing an opportunity among consumers who are buying – the vast majority want an upgrade, and are more interested in smart TVs with larger display sizes. Another trend IHS iSuppli noticed is that plasma TVs are losing favor faster – with sales dropping by almost 39% compared to a 7% dip in LCD TV sales.
“The US market is migrating towards sales of high-end TV sets,” stated IHS’ consumer electronics & technology analyst Veronica Thayer.
“With most households now owning at least one flat-panel TV, consumer’s have become more discerning in their tastes, placing a high value on features such as internet connectivity, supersized screens and LED backlighting.”
What this means is that the high-end, or smart TV market, is faring much better. Larger LCD TVs, with a display size of 50 inches or more, accounted for 27% of all US shipments during the first quarter, up from 15% in the first quarter of 2012. During the same period, the average retail prices of LCD TVs rose from $682 to $704. Meanwhile, LED TVs saw their share of the US market increase, with shipments rising to a massive 72%, from just 37% a year ago.
As far as manufacturers go, Samsung leads the way in the US, commanding 31% of its market. However, IHS iSuppli points out that Vizio seems to be gaining fast, now accounting for 16% of all shipments.
“Samsung has held onto its position as the US’s leading premium TV brand. It’s done so by capitalizing on the demand for high-end features, but Vizio is also making moves in this direction with its own line-up of smart TVs. However, its revenues are still far lower than those of Samsung,” said Thayer.
“However, we’re definitely seeing a trend towards feature-rich TV sets with larger display sizes, which are leading to increased retail prices, providing an opportunity for manufacturers to recoup lost revenues.”
Source: IHS iSuppli