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Taiwanese Panel Manufacturers to Lead 4K TV Display Shipments This Year, According to NPD DisplaySearch
Panels from Innolux and AUO are expected to account for more than half of all 4K shipments in 2014
Santa Clara, Calif., February 27, 2014 — 4K TV display panels have become increasingly available and affordable to TV manufacturers, and Taiwanese panel makers Innolux and AUO are forecast to lead 4K panel shipments worldwide this year. According to the latest NPD DisplaySearch Quarterly LCD TV Value Chain & Insight Report, these two companies are expected to have 58% of the market in 2014, followed by Korean manufacturers (Samsung Display and LG Display) with 25%, and Chinese manufacturers (ChinaStar and BOE) with 14%.
There remains a significant difference in strategy between Chinese and global brands. Chinese brands are aiming to sell 4K TVs at a small premium in their domestic market, while global brands want to maximize image quality. Some panel makers are promoting reduced-specification 4K TV panels to lower cost and increase shipment volume; however, this strategy might not fit well with top brands aiming to position 4K TV as a high-end segment sold at premium prices.
As Chinese brands continue to lead 4K TV manufacturing and shipments, 4K panel demand from China’s top six TV brands is crucial to all panel makers. For example, China Star expects 90% of its 4K TV panels to go to China’s top six brands, BOE 70%, Innolux 57%, and AUO 56%. The top global TV panel makers—Samsung Display and LG Display—have relatively modest plans for 4K panel production, and expect much of their production to go to their affiliated TV brands. Those brands—Samsung and LGE—each plan to source about 60% of their 4K TV panels from their in-house panel manufacturers this year.
“The 4K display demand from their related TV brands is critical to the ability of Samsung Display and LG Display to compete effectively within the growing 4K TV market,” said Deborah Yang, research director for monitors and TV for DisplaySearch. “The ability of the Korean panel makers to expand 4K panel production is dependent on their success in securing more 4K display clients, beyond satisfying the needs of their own 4K TV brands.”
“The rise of the 4K TV market is mainly driven by the supply side, while leading TV brands are concerned about the value proposition of 4K TVs,” Yang said. “While some TV brands are considering increasing their 4K TV shipment targets, we continue to see a mismatch between 4K TV panel supply plans and consumer purchasing expectations.”
Figure 1: 4K LCD TV Panel Business Plans by Panel Maker Shipments to TV Brands in 2014
Source: NPD DisplaySearch Quarterly LCD TV Value Chain & Insight Report
The Quarterly LCD TV Value Chain & Insight Report maps the relationships between LCD TV brands, OEMs, and panel suppliers with actual shipment information. For more information, please contact Charles Camaroto at 888-436-7673 or 516-625-2452, e-mail email@example.com, or contact your regional NPD DisplaySearch office in China, Japan, Korea or Taiwan for more information.
About NPD DisplaySearch
NPD DisplaySearch, part of The NPD Group, provides global market research and consulting specializing in the display supply chain, including trend information, forecasts and analyses developed by a global team of experienced analysts with extensive industry knowledge. NPD DisplaySearch supply chain expertise complements sell-through information from The NPD Group, thereby providing a true end-to-end view of the display supply chain from materials and components to shipments of electronic devices with displays to sales of major consumer and commercial channels. For more information, visit us at http://www.displaysearch.com/. Read our blog at http://www.displaysearchblog.com/ and follow us on Twitter at @DisplaySearch.
About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,800 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us or visit http://www.npd.com/ and http://www.npdgroupblog.com/. Follow us on Twitter at @npdtech and @npdgroup.