May 11, 2009 09:33 ET

DisplaySearch Reports Preliminary Q1’09 North America TV Results Show Surprisingly Strong LCD TV Demand; Vizio Rises to #1 in LCD TV

AUSTIN, Texas --(Business Wire)-- May 11, 2009 Despite continued economic weakness, North American consumers continued their love affair with flat panel TVs as demand outpaced brand and retailer supply during the first quarter of 2009, leaving many retailers out of stock on some models. Following the first Y/Y quarterly decline in shipments during Q4’08, Q1’09 LCD TV shipments surged 23% Y/Y to 7.2M units according to preliminary results from the latest DisplaySearch Quarterly Global TV Shipment and Forecast Report, as aggressive closeout pricing and Circuit City’s liquidation brought consumers to retailers looking for bargains. In particular, discount channels seemed to prosper more than most as price sensitive consumers sought the lowest prices and convenient shopping. Also of note, Vizio returned to the #1 ranking in LCD TVs for the first time since Q2’07, overtaking Samsung and Sony in the process and improving their unit share from 13% to 19%.

“Vizio is a relatively young TV brand in the US marketplace, but their strong alignment with mass merchant and warehouse club retailers seemed to put them in the right place at the right time with growing channels,” said Paul Gagnon, DisplaySearch Director of North America TV Research. “As LCD TV panel makers quickly return to nearly full capacity and simultaneously push panel price increases, the industry will have to carefully monitor the impact that slower retail price declines may have on consumer demand during the second half of the year to avoid a potential repeat oversupply situation.”

Funai, another company that predominantly sells value priced products to discount retail channels, also saw their share improve from Q4’08 to Q1’09, rising from 7% to 8.5%, with shipments nearly unchanged from the previous quarter. Funai sells the Sylvania and Emerson brands in North America, and the Philips and Magnavox brands since last quarter. Premium brands like Samsung and Sony lost share as consumers became more price sensitive, looking both for better value and smaller screen sizes than last quarter. The premium brands are stronger in the 40” and larger screen sizes, as well as offering advanced features such as 1080p resolution, 120 Hz or higher frame rates, and higher-quality image processing—all of which add to the retail price.

To view the full release and additional highlights visit

http://www.displaysearch.com/cps/rde/xchg/displaysearch/hs.xsl/090511_preliminary_q109_north_america_tv_results_show_surprisingly_strong_lcd_tv_demand_vizio_rises_to_top.asp

DisplaySearch
Stacey Voorhees-Harmon, PR Consultant, 925-336-9592
stacey@savvypublicrelations.net