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North American retailers expect strong LCD TV sales

Sales of liquid-crystal-display (LCD) TVs in North America during the upcoming holiday shopping season are expected to be stronger than last year amid falling prices for TV sets, reflecting a high inventory buildup by channel vendors, market researcher DisplaySearch said yesterday.

As of this month, there was more than a two-month inventory in North America ahead of the annual shopping season that begins on Black Friday, indicating their strong confidence in the sales this year, David Hsieh (謝勤益), vice president of the Austin, Texas-based researcher, said in Taipei.

Black Friday is the first shopping day after Thanksgiving -- the fourth Thursday of November -- and marks the start of the traditional Christmas shopping season, a crucial period for retailers.

"During last year's Black Friday week, vendors sold four times as many TVs as during an average week, thanks to promotions," Hsieh said during the annual Taiwan TV Supply Chain Conference.

"This year, we believe sales will be even stronger to reach [a] five-fold [increase]," he said.

The price of the mainstay 32-inch LCD TV is expected to fall by 23 percent this year from last year to US$697 per unit following a 39 percent year-on-year decline last year, Hsieh said.

Sales of LCD TVs are expected to enjoy a rapid 18 percent compound annual growth rate in the five years to 2011 to 141.2 million sets, DisplaySearch said.

Robust demand for slim-screen TVs and a 35 percent reduction in capital spending next year may cause an overall shortage in panel supply during the second, third and fourth quarters of next year, Hsieh said.

But, the situation would not be as severe as it was this year, DisplaySearch said.

Panel supply is expected to exceed demand by 8.7 percent to 9.6 percent in the peak season next year, compared to between 6.3 percent and 8.5 percent this year, DisplaySearch said.

The researchers see a 10 percent glut as a balance range.
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