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Top TV makers retain market lead as consumers embrace LCD sets

By Colleen Taylor, Contributing Editor -- EDN, September 25, 2007

The face of television technology is changing, but analysts say that the traditionally market leading companies are staying on top by satisfying consumers' increasingly sophisticated tastes for new technologies that enable better screen quality and larger sized displays.

The type of unit shipped is set to become the TV market's major story in the near future, market research firm iSuppli Corp. said in a report released today. "The most significant television market development during the coming years will be the loss of dominance by cathode ray tube (CRT) televisions globally," Riddhi Patel, principal analyst for television systems at iSuppli, said in the report. "By 2009, these televisions will account for only 38 percent of unit shipments, down from 47 percent in 2008 and 56 percent in 2007."

Those numbers reflect a major change from just last year: In Q1 2006, iSuppli reported that CRT sets comprised 76 percent of worldwide TV units shipped.

"Consumers now believe that picture quality is the main attribute they look for when buying a new television," iSuppli's report added.

This switch to new and more sophisticated technologies has not yet shaken up the industry's major players, as the leading TV making companies have retained their edge by offering the latest in CRT alternatives, the firm said. Samsung Electronics Co. Ltd. held onto its lead in the global television market in Q2 thanks to its strength in LCD-TV shipments, according to iSuppli Corp.'s latest ranking.

Samsung held a 12.4 percent market share in the overall television unit shipments, while LG Electronics came in second with 11.4 percent, Philips Electronics in third with 7.1 percent, Sanyo in fourth place with 6.3 percent, and TCL Group in fifth with a 5.6 percent share.

iSuppli warned, however, that these major companies should not get too comfortable in resting on their laurels in the TV market. In its report, the firm said that "premium brands are feeling a squeeze ... thanks to a blossoming of low-cost value brands that are presenting a challenge to all television manufacturers."

Looking ahead, the overall television market will expand at a compound annual growth rate of 4 percent between 2007 and 2011 for unit shipments, and 5 percent for revenue. iSuppli said it forecasts overall global television shipments will grow to 245.5 million units by 2011, up from 207.5 million units in 2007 and up from 190.9 million units in 2006.

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