TrendForce: 4K TV Panel Shipment Rose 14% in Q4’13 with 1.3% Penetration Rate for Entire Year

According to WitsView, the display research division of the global market intelligence provider TrendForce, the 4K TV panel shipment attained the peak in Q4 last year, reaching 1.34 million units and growing 14% QoQ as it was lifted by the year-end shopping season and the restocking demand for the Lunar New Year holidays, Chinese brands’ aggressive procurement and panel makers’ strong promotion. The shipment came to a total volume of 3.1 million units for entire 2013 with a penetration rate 1.3%. Among the makers, Innolux, with the leading advantages and aggressive pricing strategies, successfully controlled 60% of the segment, while China Star had a 14% market share of the 4K TV panel shipment, exceeding AUO, with the advantages on brand outlets of the group. The 4K feature continued to hit the newspaper headline in the 2014 CES as the high resolution remain the development core on electronic products this year.     

Figure 1: Quarterly 4K2K LCD TV Panel Shipments (K Units)


Source:WitsView

After having LED slim TV, 3D, and smart internet-connection TV as development cores, the LCD TV market turns to focus on the high-resolution. 2013 can be viewed as year one for the 4K TV development history, and with Taiwan-based makers INX and AUO’s active promotion, their 4K panels attract the adoption of China’s top six TV brands in addition to global brands, such as Sony, Samsung, and LG. The Chinese top six brands develop actively 4K TV products of all sizes, from small to medium and large, to meet the vast demand in the Chinese market. 

WitsView senior research manager Jeffy Chen indicates as Taiwanese makers lead ahead in the 4K TV panel development and launch a wide range of models, different from Korean makers’ strategy to position the 4K products in the high-end 55”-and-above large TV market. On top of the 50”, 55”, 58”, and 65” high-end 4K panel products developed by Taiwanese makers, Innolux leads to mass-produce the mid-sized 4K panels, including the 39”, 40”, and 42”. The aggressive pricing strategy catches the eye of Chinese brands, and the 4K ultra high-resolution TV has become an ideal stimulant to lift Chinese brands’ shipments after the subsidy policy ended. 

Of the 2014 4K TV panel shipment, Innolux topped all its rivals with the forerunner advantages and aggressive pricing, holding a 64% market share and the No.1 place. China Star, having a 14% market share, came as the second as it worked closely with the brand of the same group, TCL, and successfully entered the supply chains of other Chinese brands. AUO, the No.3 maker, worked together with Japanese brands such as Sony and Toshiba in the first half of the year and started to supply 4K panels to Chinese brands in the second half. AUO itself held a 12% market share and Taiwanese makers enjoyed a combined 76% share of the 2013 4K TV panel market with Innolux’s volume included.

Figure 2: 2013 4K2K LCD TV Panel Shipment (%)


Source:WitsView

As we look at CES 2014, the show was crowded with various 4K hardware devices, including LCD TVs, monitors, and NBs, while the 4K video cameras, digital cameras and the highly-compressed 4K streaming video technology displayed by software developers ease consumers’ concern about the insufficient 4K video content and encourage the high-resolution products to move to the next level of upgrade. TV brands show diverse development strategies as Samsung and LG continue to launch high-end 4K TVs, equipped with features such as “curved” and “bendable”, which add new attractiveness to 4K TVs and declare their ambition in the technologies.    

Japan-based Sony show completely different competitiveness as it seeks the integration of 4K software and hardware, from gaming to video entertainment. Vizio, TCL, and Changhong strongly promote low-priced 4K TVs to rapidly expand 4K TV markets in North America, China, and Europe with more affordable prices. Brands’ strategic diversification stirs various ideas on panel makers’ 4K TV panel development, and what can be expected is panel makers will develop more entry-level 4K TV panels of different sizes under 50” to target at the Chinese market and compete for the champion of 2014 4K TV panel shipment.