WitsView: Hisense and TCL advanced to Global LCD TV shipment’s Top 7 and 8

Despite the sluggish economy in North American market and the ongoing debt crisis in Europe, LCD TV shipments among top 6 home appliance brands in China have soared to a new height in September. According to the September reports published by WitsView and China’s Σintell, the top 6 brands shipments have been growing for three consecutive months; in particular, September reached record-high 5.205 million units with MoM growth of 47.3% and YoY growth of 25.8%. The total panel procurements have been growing for two consecutive months reaching 4.117 million units with MoM growth of 19.4%.

WitsView director Burrell-Liu indicates that September shipments among domestic brands in China have reached record high this year with YoY growth of 13.6%. The surge can mainly be attributed to the merchandise distribution for both Mid Autumn Festival and National Day Holiday promotions. Even with this huge shipment surge in September, the top 6 brands have maintained tight control over panel procurements in preparation for the coming Lunar New Year. The average inventory level among top 6 brands is estimated to be reduced by 2 weeks coming to the healthy level of 4.5 weeks. Looking at the global LCD TV brand shipments, the overall shipment has peaked in September with a QoQ growth of almost 20% for global LCD TV shipment in Q3, and a 10% growth has been estimated for Q4. However, with the total global demand lowered to 200 million units, creating a huge base period gap compared to the original estimate of 230 million units at the beginning of this year. Despite the quarterly surge, the uncertain market demand outlook remains. 

In terms of September shipment statistics among top 6 brands in China, WitsView indicates that Konka has taken the lead in terms of monthly growth with MoM growth of 63.2% followed by the 50.1% of Hisense, 49.5% of Changhong, 49.1% of TCL, 44.3% of Skyworth, while the MoM growth for Haier is only 13.8%. In terms of the share of total shipment accounted for by monthly shipment by each brand, TCL has the leading position with 24.7% followed by the 23.3% of Hisense. Skyworth is ranked third at 17.2%, while Haier remains at last position with the share of only 6.8%. Following Q2 where the shipments of top 3 brands in China have jumped to the 8th to 10th places globally, based on shipments in Q3 we can see both Hisense and TCL have moved one step upward taking the 7th and 8th positions of global LCD TV brand shipments, while Skyworth is tied with Philips for the 9th position. (Table 1)

The penetration rate of LED among top 6 TV brands in September has taken one step forward to 53%, while the average LED penetration rate from January to September has reached 44% surpassing the global average of 42%. In addition, the 3D penetration rate has reached 17%, while the average 3D penetration rate from January to September is 8% which is close to the estimated global average of 8.2%.

As for the panel demand situation in September, CMI remains top one in terms of panel shipment among top 6 brands worldwide despite its share drop from 35% in previous month to 29% this month. SEC has jumped to second place with market share of 23%. LGD and AUO are ranked third and fourth with market shares of 22% and 19% respectively. Samsung’s global rank advancement is due to aggressive promotion of 43”and 48” products while Samsung has further opened up sales channel of cell in market of China.

Conclusion
With the industry beginning to implement unpaid leave, it is an indication that the economy remains sluggish. The growing profit loss among financial statements of panel makers in Q3 have further highlighted the dilemma faced by panel industry. With economic recovery not yet to be seen, panel makers should establish the confidence against the impact from gloomy environment and adopt cautious and reasonable control over production capacity. As indicated by WitsView, after the production reduction and inventory digestion in Q3 and under the heavy pressure of profit loss, it is predicted that there is a chance for IT panel price to stop falling in November, while TV panel may follow its footstep. However, with unknown economic conditions in Europe and US plus the tightened capital control of banks in China with respect to SMEs, funding gaps have led to operation difficulties among various companies. Based on other negative factors such as the continuously falling housing demand, the “home appliance going to the countryside” project coming to an end gradually among all provinces in China next year, and the passed consumer voucher rush and digital replacement rush in Japan, panel makers must apply more rational thinking for future strategies and operating directions in order to survive this harsh winter.

Table 1. Ranking of 2011 1Q-3Q W/W LCD TV shipment market share

Source: WitsView, 2011 Oct/E