DisplaySearch Substantially Increases LCD TV Forecast; New LCD TV Database Introduced

Business Wire, Sept 26, 2002

Business Editors and High-Tech Writers

AUSTIN, Texas--(BUSINESS WIRE)--Sept. 26, 2002

DisplaySearch, the worldwide leader in FPD market research and consulting, revealed in its Q3'02 Quarterly LCD TV Shipment and Forecast Report that LCD TV demand is expected to grow much faster than previously predicted.

Despite a continued weakness in the worldwide electronics industry, consumer demand for competitively priced flat-panel TVs is significant. With a growing number of TFT LCD producers building 5th and 6th gen fabs, which should dramatically lower large-area display costs, the amount of capacity targeting the LCD TV market is increasing. Increased optimized supply and lower costs should translate to lower prices and a larger market. DisplaySearch now expects the greater than 10" LCD TV market to rise at a 92% CAGR to 2006, reaching 16.2 million units, up from the prior forecast of 14 million units.

The 170-page report tracks shipments of LCD TVs and LCD TV modules by supplier, region, size, resolution, aspect ratio and average selling price (ASP). It includes shipments for the previous quarter as well as a rolling 8-quarter forecast. Also included is a section on LCD TV electronics, which explains all the electronics and formats used in LCD TVs and discusses the types of ICs employed. Future issues will quantify scaler, deinterlacer and decoder market share. This issue of the DisplaySearch LCD TV report also covers the penetration of LCD TVs into the overall television market and discusses the penetration of LCD TVs into the overall large-area LCD market. The report reviews numerous LCD TV growth enablers/limiters, including trends toward HDTV, wide aspect ratios, tiled displays and TV/computing convergence products, as well as problems with LCD viewing angles, response times and color saturation.

In addition to increasing forecasted volumes, the Q3'02 report identifies three significant trends in the LCD TV industry. LCD TVs are migrating to larger sizes, wider aspect ratios and higher resolutions.

-- By size: The report shows the average display size for all LCD TVs 10" and larger was 16.6" in Q2'02 and is expected to grow steadily to 20.7" by Q2'04. In Q2'02, the dominant panel size was the 15" class, representing 46% of the market. By Q2'04, 15" LCD TVs are expected to remain the dominant LCD TV size for units, but with a much lower share, while 28-32" LCD TVs will lead on a revenue basis, growing from 6% in Q2'02 to 22% in Q2'04.

-- By aspect ratio: The report identifies a steady move to wider aspect ratios, from 17% in Q2'02 to more than 52% in Q2'04. This trend will accelerate as HDTV broadcasting and the popularity of DVD titles in a wide aspect ratio become more popular. The most commonly used wide aspect ratio appears to be 1,280 x 768, introduced at several sizes, although some TFT LCD manufacturers are considering the possibility of matching the US HDTV standards at 1,280 x 720 pixels.

-- By resolution: Trends suggest that although the human visual system does not demand high resolutions for video applications, there is a definite move to higher pixel formats. The number of pixels per panel is predicted to increase from 543 K in Q2'02 to 710 K pixels in Q2'04. As panel size increases, pixel density is not expected to improve significantly. In terms of pixels per inch (PPI), the LCD TV market is expected to stay steady throughout the forecast period at about 60-64 PPI.

Sharp Corporation currently dominates the LCD TV market, representing 51% of unit sales in Q2'02. LG Electronics/Zenith (15%), Samsung (9%), Sony (9%) and Panasonic (8%) are the only other brands, at present, to earn a noticeable market share.

Regionally, Japan dominates this market for many of the same reasons it dominated the LCD monitor market in its early stages -- higher costs of energy and real estate causing consumers to consider the smaller footprint and lower power consumption benefits of LCDs. Japan represented 57% of the worldwide market in Q2'02 and Japan's market share is expected to remain above 50% through next year.

DisplaySearch is also pleased to introduce the Monthly LCD TV Pricing and Specification Database, which provides specification and pricing information for LCD TVs found in both North America and Japan. The new database shows high, low and average pricing by model number in yen and $US back to March of 2002. It is available at an annual subscription price of $1,500.

An annual subscription to the Quarterly LCD TV Shipment and Forecast Report is available in print for $2,995, with a site license available for $3,495 - $3,995, depending on company size. DisplaySearch authors more than 20 biweekly, monthly, quarterly and annual FPD-related publications in addition to offering consulting services and hosting display conferences worldwide. For more information on any DisplaySearch product or service, please contact DisplaySearch at TEL: 512/459-3126, FAX: 512/459-3127, email: info@displaysearch.com or Web: www.displaysearch.com.