TV Makers Hoping Larger Screens and Enhanced Features Will Reverse Ongoing Shipment Decline

In this tight economy, it appears many people are having a tough time justifying the notion of upgrading their existing TV sets. According to the folks at DisplaySearch, global TV shipments declined for the second consecutive quarter, dropping 8 percent year-over-year in Q2 2012. Interestingly, Japan is particularly proving a tough market, as second quarter shipments plummeted 77 percent compared to one year ago, DisplaySearch says.

"A sharp decline of demand in Japan and a correction in Europe following the analog broadcast shut-offs in 2010 and 2011 have significantly impacted the TV market and contributed to a decline in shipments," noted Paul Gagnon, Director, North American TV Research for NPD DisplaySearch. "Emerging markets have also been affected by softer shipment growth recently, related to a rapid decline in demand for CRT TVs and to less price erosion in flat panels. Despite this, the growth in demand for larger screen sizes and the increasing feature mix is cause for optimism."

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The reason DisplaySearch believes larger screen sizes could prop up the TV industry is because even though LCD TV shipments fell 2 percent year-over-year in Q2, demand for LCD TVs 40 inches or larger actually rose 15 percent in the same time period.

One company that isn't stressing over all this is Samsung, which grew its revenue share by 18 percent, both sequentially and annually. LG Electronics, Sony, Panasonic, and Sharp all saw quarterly declines.