TrendForce: Taiwan LCD TV SI Shipments Declined by Nearly 28% in 1Q12, Projected 20% QoQ Growth in 2Q12

According to Taiwan LCD TV SI Shipment Report by WitsView, TrendForce’s panel research division, a downtrend was seen in both Taiwan and worldwide LCD TV SI shipments. The former amounted to 7.63 million units with QoQ regression of 28% in 1Q12, while the latter declined by 24.5% QoQ. Taiwan LCD TV shipments are projected to rise by 20~23% in 2Q12 and continue to increase by 10~13% in the next quarter, while 2012’s worldwide LCD TV shipments are estimated to reach 216.5 million units with YoY increase of 8%.

Burrell Liu, WitsView research director indicates that the regression of 1Q12 Taiwan LCD TV SI shipments was mostly due to four factors: 1) 1Q12 was a traditional off-season, 2) demand for TV was declining after the transition from Analog TV to digital TV in Japan last year, 3) Japanese new models are projected to gradually  begin shipping in 2Q12 as Japan brand vendors were aiming at inventory control and clearing out old models as Japanese fiscal year ends in March, 4) brand vendors’ outsourcing ratio was stagnant, standing at 33% and staying flat from the previous year; among which Japanese clients was taking up 50~55% of Taiwan LCD TV outsourcing business.

Worldwide LCD TV brands have presented a slow uptrend in shipments due to US and European economic crisis in 2008 and 2011. Since last year, the brand vendors have mostly targeted at increasing profits, decreasing loss, and inventory control. In terms of LCD TV brand shipments in 1Q12, Korean brands rose 4% YoY while China brands enjoyed continuous growth of 47%; white brand vendors’ shipments surged by 40% YoY with the help of increasing demand for low-priced products due to economic slowdown. Meanwhile, owing to declining domestic demand and weak US and European demand, market share of Japanese brands in 1Q12 plummeted by 24% YoY to 25.8%, dropping sharply compared to 2010 (32.4%) and 2011 (29.1%).

According to WitsView, LCD TV sales during May 1st Labor Day holidays showed lukewarm sales growth of 0.5% compared to a year earlier, bringing uncertainty to rattle market confidence in the months to come. WitsView estimates that 2012’s Taiwan LCD TV SI shipments are expected to reach 46 million units with a slightly increasing YoY, accounting for 21~22% of worldwide LCD TV shipment ratio same as last year, raising concern about sluggish Taiwan LCD TV shipments. Vestel, a Turkish TV SI, achieved 2.8 million units in 1Q12’s TV shipments and is likely to take over Foxconn and further become the world’s No.2 SI, whose business strategies and distribution channels are the examples worth following. Korean TV brands maintained their profitable sales growth by gaining market share of 30.3% and 30.9% in 2010 and 2011 respectively. In addition, Korean TV brands’ 32.7% market share in 1Q12 reflects their prominent development in TV industry that leads Taiwan TV brands to make self-exam and follow.