According to Pacific Media Associates (PMA), a display market research and consulting firm located in Menlo Park, CA, LCD TV consumers are shifting toward smaller, more affordable models. According to PMA’s Consumer Flat Panel Display Sell-Through Tracking Service, total unit market share for 30″ – 34″ LCD TVs rose from 16% in January to 24% in February. On the other hand 45″ – 49″ LCD TV shipment share dropped four points from 18% to 14% while the very popular 40″ to 44″ size segment dropped two points from 20% to 18%.
The LCD TV landscape in the US is a fuzzy one at best. But PMA’s results are showing that there is a clear shift toward more affordable units. Most big ticket item purchases in the US have traditionally been done via some sort of borrowing: retailer credit cards, personal credit cards, home equity, etc. All sorts of borrowing are being squeezed and a large drop of employment was reported in February. There is also a strong correlation between housing and LCD TVs. You need a house to put a LCD TV in. Of course, it isn’t as simple as that, but there is little doubt that the declining strength of the housing market is having a strong (negative) influence on the LCD TV market.
LCD manufactures beware! If you continue to pump into a supply chain that is getting weaker at the retail end, it would be wise to throttle back production. Unfortunately, that does not seem to be the case. Most LCD manufacturers are reporting exceptionally strong Q1’08 results and have high expectations for the rest of 2008. 2008 should be very interesting.
[tags]32″, LCD TV, Pacific Media Associates, PMA[/tags]