Meko Press Releases

European LCD TV Market Beats Expectations

DATE: 23^rd May 2007
Preliminary data from Meko's DisplayCast ATV market intelligence service shows that flat panel TV set sales in Q1 2007 were ahead of expectations despite some concerns about over-stocking by retailers in Q4 2006. Unit sales of LCD and plasma TVs were over 5.9 million for the period to show more than 70% year on year growth.

The data indicates that sales were above Meko's expectations despite a seasonal drop in shipments of more than 20%. By technology, sales of LCD TVs exceeded 5 million units and plasma TV shipments held up well despite intense competition from LCD.

"We were cautious in our estimate of the market for Q1 as it was not clear that all stock would sell through during the period", noted Pete Gamby, Meko's research director. "However, the continued expectation that LCD panel price rises might hit street pricing may well have aided suppliers in getting retailers to shift stock on the shelf in order to be able to place new orders before price increases started". There were signs in February that stock was beginning to build up and, although the situation has now returned to somewhere close to perfect for some, Meko still reports that half of the TV makers it surveyed in early May reported too much channel inventory. "Let's hope that we don't have a bad Q2 as panel price rises combine with over-supply to impact sales", commented Gamby.

Following a particularly difficult Q4 2006, the plasma suppliers fared rather better in Q1. Sales dropped by only around 13% quarter on quarter and year on year growth was a solid 53%. The renewed efforts of Samsung and LG to promote plasma TVs appear to be paying off with Samsung in particular having a good Q1.

By brand, Samsung led in the LCD market with Philips in second place. Sony remained in third place. The top five brands accounted for more than 75% of the LCD TV market in Q1, down from close to 80% in Q4.

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For more information or graphics, please contact Pete Gamby on +44 (0)1276 22677 or by email at peteg@meko.co.uk.

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