PDP shipments wane as LCD fortunes climb
South Korean vendors hit hardest as plasma panel prices tumble to ‘record low’.
Global plasma panel display (PDP) shipments fell 4% quarter-on-quarter during Q4 2006 to 2.7 million units, according to leading industry analyst DisplaySearch.
The figures also show that 2006 was the worst year for PDP channel players since plasma technology became available to the market. Shipments were 15% lower than suppliers had initially forecast and came in 9% below DisplaySearch’s predictions.
This was also the first period that PDP unit shipments grew by less than 47% year-on-year.
The figures looked even gloomier when it emerged that 2006 saw the industry’s first year-on-year decline in revenues. The dip in revenues saw the global market drop to US$1.8 billion in Q4 2006, down 11% quarter-on-quarter, and 5% year-on-year.
The results represent only the second quarter-on-quarter fall in shipments since Q1, 2003. The figures proved a major disappointment for suppliers showing a meagre 3% growth year-on-year.
Matsushita reclaimed the top position in the global market with a 40.1% share of the market during Q4, up from 30.4% for the same period in 2005, enjoying a growth rate of 27% year-on-year on the strength of its Panasonic brand.
Market developments in 2006 saw South Korean companies LGE and Samsung SDI as the PDP market’s major casualties.
LGE dropped from the top spot in the PDP segment with a 21.5% market share in Q4, 2006 compared to 32.5% for the same period the previous year.
The company also suffered a 36% decline, in terms of growth, as a number of the company’s clients in the 42-inch-plus categories opted for LCD technology according to the report.
DisplaySearch also cited the same reasons for Samsung SDI’s 14% decline, in terms of growth, finishing Q4, 2006 with a 20.8% market share compared to 23.2% for the same period in 2005.
Pioneer enjoyed the highest rate of growth with 73%. However, the company still ran in at number five in the global market with an 8.5% overall marketshare for the surveyed period.
The DisplaySearch report also stated that the global downturn in unit shipments came about despite a 7% quarter-on-quarter, and 17% year-on-year, drop in plasma panel prices resulting in some PDP TV units retailing at a “record low” of under US$670.