Based on a survey by WitsView, a research division of TrendForce, in the panel procurement volume among China TV brands, LED ratio reached 14.5% in 2Q10, growing by 2.7 times QoQ in quantities compared to a 4.8% ratio in 1Q10.

 

WitsView pointed out that LGP and LED chip were insufficient this year, and some of the developments were behind schedule. As a result, Samsung, LGD and AUO were the main panel makers that were capable of supplying large volume of LED TV panels; in the meantime, they were also the main suppliers for China LED TV panel at current stage. In terms of LED TV shipment ratios, LGD took the first spot with 25% while AUO came in second with 19%, followed by Samsung with 18%. China LED panel supply volume from other panel makers was relatively small.

 

In the ratio of LED TV panel procurement by brand, TCL took the lead, accounting for 23%. Of other major vendors such as Konka, Haier and Hisense, the individual ratios mostly fell at 13%~16%. The difference was small. For other minor vendors, the procurement ratio merely accounted for 9.5% which was relatively low compared to that of the top 6 brand vendors.

 

By size, LED TV panel demand was on the two opposite extremes which were 42W and above as well as 26W below. In 46W and above panel procurement, the ratio of LED exceeded 40%; in 40W and 42W, even though the penetration rate was relatively low, it still accounted for nearly 30%; in 26W and below, the penetration rate reached 20% because monitor panels, relatively simple in LED BLU structures, were adopted in ≦26W TVs, which narrowed the cost gap between CCFL and LED models. On the other hand, since a certain price gap remained between LED and CCFL panels at current stage, the popularization of LED products was restricted in 26W and 32W segment. Thus, LED ratio merely accounted for 8% and 4% respectively.

 

LED TV has been attracting huge attention since the beginning of the year, but how about its sales performance? WitsView’s analyst indicated that the inventory pile-up, causing the turmoil in panel industry, concentrated on CCFL models. Accordingly, brand vendors’ top priority is to clear CCFL models in peak season instead of promoting LED products. In addition, TV panel price decline deepened lately whereas the price reduction in LED panel was limited in the same period. As a result, the price gap expanded between CCFL and LED panels, restricting downstream brand vendors to launch large-scale sales promotions for LED TVs. WitsView takes a rather conservative attitude toward the sales performance of LED TVs during the China National Day holiday.