A recent report has revealed how the outlooks for TV sales growth in developed and emerging countries appear to be heading in different directions. The latest Quarterly Advanced Global TV Shipment and Forecast Report from market research firm DisplaySearch also indicated that the global demand for televisions is expected to fall, and TV shipment levels from 2010 to 2011 are set to stagnate at 248 million units.
|TV sales growth in developed and emerging markets to diverge|
The downgrade in forecast is said to be caused by lower annual targets from HDTV manufacturers, and the peak procurement period seeing lower-than-anticipated demand for key components used in the production of television sets. Breaking down the shipped TVs by technology type, 206 million units are expected to be LCD TV displays, whereas plasma televisions will account for 17 million units.
The data has shown that TV sales in developed countries such as Western Europe, Japan and North America will see some decline. However, television shipments in emerging markets are expected to continue growing according to the report.
Paul Gagnon, Director of North America TV Research for DisplaySearch, said that ongoing problems with the economy has resulted in lower-than-expected demand in developed nations for non-essential items like large-sized HDTVs. He explained that consumers in areas such as Europe and North America are now seeking more value for money, and exercising more caution when spending their disposable income.
Emerging markets, on the other hand, are continuing to demonstrate impressive growth, Mr Gagnon noted, although this is not quite strong enough to make up for the weak demand being witnessed in developed countries. He added that this is the chief reason behind reducing the forecast for overall LCD and plasma TV sales worldwide.
While the total demand for television sets this year is predicted to remain flat, DisplaySearch expects sales of flat-screen televisions (which excludes CRT and rear projection TVs) to rise 6 percent on a year-on-year basis. 2012 should see even higher growth to 9 percent, partly because of lowered price premiums for advanced HDTV technologies like LED backlight and 3D capabilities.