Q1’06 Global Plasma TV Shipments Rise 87%

Worldwide plasma TV shipments rose 87% year-over-year (Y/Y) while falling 26% quarter-over-quarter (Q/Q) to 1.7 million units on traditional seasonal weakness coupled with new model transitions and supply constraints. Plasma TVs remained dominant compared to other TV technologies in the 40”-44” segment with a 65% share, down from 68% in Q4’05, and gained share at 50”-54” rising from 29% to 33%. With plasma module supply tight and larger sizes and higher resolutions gaining share, blended plasma TV prices rose 2% sequentially while falling 25% Y/Y to $2,353. As a result, plasma TV revenues fell slower Q/Q on a revenue than a unit basis, down 24% Q/Q while rising 41% Y/Y to $4.0 billion.

Relative to other technologies, the plasma TV unit share was flat sequentially at 3.9% vs. 2.0% in Q1’05. On a revenue basis, the plasma TV share was 19%, up from 16% in Q1’05 but down from 20% in Q4’05.

Regionally, North America, China and rest of world (ROW) gained share at the expense of Europe and Japan.

–Japan’s plasma TV shipments rose 77% Y/Y, but were down 51% Q/Q resulting in just a 6.1% share. Unlike other regions, 37” was the most popular size with more than a 50% share.

— North America’s plasma TV shipments rose 85% Y/Y, but were down 17% Q/Q, earning a 32% share of the global plasma TV market, up from 28% in Q4’05. 42”-43” HD led with a 42% share, up from 39%.  50” overtook 42” ED to become the second most popular plasma TV for the first time in Q1’06. The 50” share in North America was three times higher than in any other region and North America accounted for 64% of the world’s 50” plasma TV shipments. 

— After gaining share for three consecutive quarters, Europe’s share declined from 41% to 35% on a 36% Q/Q decline although shipments were up 102% Y/Y. The European PDP market is rapidly moving to HD with the HD share rising from 37% in Q4’05 to 44% in Q1’06. 

–China’s plasma TV market experienced the slowest Y/Y growth of 10% while falling 15% Q/Q. Its share of the global plasma TV market rose from 8% in Q4’05 to 9% in Q1’06, but was down from 15% in Q1’05 as domestic brands shift their focus to LCDs.

–Rest of world (ROW) was the only region where plasma TV shipments increased sequentially, rising 2% Q/Q and 141% Y/Y.  As a result, the ROW share rose from 13% in Q4’05 to 18% in Q1’06. 42” ED remained the single most popular product with a 56% share, but HD plasma TVs rose from 37% to 44%.

By size and resolution worldwide, 42” ED remained the single most popular plasma TV, but fell from a 48% to a 42% share with 42”/43” HD rising from 30% to 35%. The 50”+ share also increased from a 12% to 14% share. The worldwide HD share rose from 49% to 56%. 

By brand:

— Panasonic led with a 22% share, down from 26% as shown in Table 1.  The top 5 remained the same as Q4’05 with LGE, Hitachi, Pioneer and second tier brands taking share.

— Panasonic remained #1 in Japan and North America, overtook Philips for #1 in Europe, but fell behind Hitachi for #1 in China.  LGE led in ROW.

— By major product category worldwide, LGE was #1 at 42” ED while Panasonic led at 42”-43” HD and 50”.

— Vizio was the fastest growing brand, rising to #7 worldwide on over a 150% Q/Q increase.

Table 1             Plasma TV Share and Growth