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TrendForce: Chinese Brands’Strong Promotion Lifts 2014 4K2K TV Penetration to 8%

According to the global LCD TV brands’shipment and the downstream quarterly report by Witsview, the display research division of the global intelligence provider TrendForce, the Q3 global LCD TV shipment reached 50.6 million units, rising 9.9% QoQ and damping 5.1% YoY. However, the global shipment for the entire year trims 1.7% for the first time to a volume 203.1 million units with a penetration rate 1% for 4K2K LCD TV, seeing a shipment of 2.1 million units.

Based on WitsView, despite panel makers are eager to sell 4K2K LCD TVs, due to hardware, firmware, contents, panel production costs, and end selling prices, brands’promotion momentum of 4K2K LCD TVs is limited. As Chinese brands are expected to lead to attack the market in 2014 along with panel makers adding production of panels of diverse sizes, and key components, such as Scaler IC, developing matured, international brands have no choices but to enter the arena.

The 2014 global 4K2K LCD TV brands’penetration rate will reach 8.1% with a shipment of 16-18 million units. In view of regional brands, Chinese brands will account for 51% with a shipment 8-9 million units, Korean brands will hold a shipment of 3.5-4 million units, accounting for 21.4%, with their own panel makers’ support, and Japanese brands have a 16.1% market share with a shipment of 2.6-3 million units thanks to the support of hardware and software integration.

In view of global LCD TV shipments by brands, the Korean brands have a 5.8% YoY shipment growth for this year and a global market share rising to 35.1%. Chinese top six brands’shipment ease with a 4.4% YoY growth and a market share slightly rising to 26.4%, and Japanese brands’ market share constantly dips to 18.1%.

In the first three quarters, Korean brands used 68.3% of Korean panels, 16.2% of Taiwanese panels, and 5.2% of Japanese panels. Japanese brands had a declining proportion 45.1% of Korean panels, 31.4% of Taiwanese panels, a rising proportion 22.7% of Japanese panels. Chinese brands had a proportion of Taiwanese panels dipping to 40.3%, a declining proportion of 27.2% of Korean panels, and a rising proportion 31.3% of Chinese panels.

WitsView believes that as the global economy rebounds slowly, brands and IC makers are anxious to find niche markets for 2014. Panels makers have been looking for profits on the improvements of ARRAY panel circuit, CELL glass slimness, and other processes including BLU modules (E-LED, D-LED), and they currently pin the hope on the resolution lifts for the new silk road of profitability.

Brands’deployment of 4K2K in 2014 is another bright spot after LED and 3D. However, the 2014 market cannot avoid the panel oversupply impacts, even high-end 4K2K products cannot escape the price-cutting competition, and if it turns from a blue sea to a red sea need further observations.

As for other TV shipment data, WitView’s survey shows the LED LCD TV penetration rate in Q3 rose to 98.4% and that for the entire year comes to 95.4%. The penetration for 3D LCD TV in Q3 declined to 20.5% and that for entire year comes to 22.1%.

Figure 1. 2014 4K2K LCD TV Shipment Market Shares by Regional Brands


Figure 2. 2013 1Q-3Q Panel Purchase by Regional Brands


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