Television shipments worldwide dropped 8 per cent, YoY, to 48 million units in 2Q15, after a year of quarterly YoY growth in 2014, according to the latest report from IHS. This was the largest YoY decrease in a quarter since 2Q09, when global demand slumped amid the global recession, noted the market research firm.

Most of the overall decline is attributed to slowing growth in LCD TVs, which now account for 99 per cent of all TV shipments. LCD TV sales have not made up for the lost volume of cathode-ray tube (CRT) and plasma TVs, which have largely left the marketplace.

"2014 was a robust year for growth, with total TV shipments rising three per cent worldwide, and developed regions growing more than 6 per cent," said Paul Gagnon, director of TV research for IHS. "This year, however, TV demand is being negatively affected by the current global economic slowdown, particularly the rise in currency prices against the U.S. dollar, which has caused retail prices to increase in emerging markets."

According to IHS, while the downturn in shipments was felt in Western Europe and Japan, the decline was most pronounced in the emerging regions of Latin America, Asia Pacific, Eastern Europe, the Middle East and Africa. Although North American demand returned to positive in 2Q15, Western European shipments fell unexpectedly, leading to a 3 per cent reduction in overall shipments to developed regions. China, considered to be an emerging market, exhibited growth in shipments in 1H15, but that momentum is slowing. Looking at larger emerging markets outside of China, the decline in shipments this year has been very pronounced, despite a government subsidy program in Mexico that added more than two million units in H1. TV shipments in Latin America declined 17 per cent YoY in Q2, with a significant amount of weakness out of Brazil, while Asia-Pacific shipments fell more than 9 per cent. "Many global brands are shifting to a weaker outlook for the balance of the year, as a result of the broad decline in demand worldwide," Gagnon said.

4K TV was a bright spot in the global TV market, with unit shipments growing 197 per cent YoY in 2Q15, to reach 6.2 million units. The growth in 4K TVs is the direct result of increased price erosion and more affordable tiers of 4K models becoming available.

The top five brands collectively comprised 60 per cent of all global TV revenues in Q2. Samsung Electronics led global revenue share at nearly 29 per cent, followed by LG Electronics at just over 14 per cent and Sony at 7 per cent. Two Chinese TV brands, Hisense at 6 per cent and TCL at 5 per cent rounded out the TV brand ranking.

By: DocMemory
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