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LCD TV market set for slowdown

Fat margins not so fat on panels
Wed Dec 27 2006, 15:08
MARKET FIRM iSuppli said that although growth in sales of LCD TVs during 2007 is still on the up, revenues will fall by 56 points compared to this year.

The market is still growing dramatically. Isuppl said global LCD TVs shipped in 2007 will be 62.5 milion units, a rise of 57 per cent from the 39.7 million shipped this year.

Worldwide factory revenues will only rise by 20 per cent, worth $53.5 billion - up from $44.7 billion this year.

The manufacturers will attempt to offset the decrease by shipping 40-inch and larger units. Average selling prices (ASPs) on LCD TVs have fallen over the last few quarters of this year and that trend will continue in 2007.

The ASP for 40- to 41-inch models will be $1,184 by the fourth quarter of 2007, down 30.8 per cent from $1,711 in this quarter.

Isuppli said Sharp is leader in LVD-TV sales worldwide, but has lost its dominance in the North American market to Philips and Samsung, and is now number three. These firms are aggressively pricing their units to put pressure on Sharp. µ



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