SAN FRANCISCOWorldwide LCD-TV shipments will grow less than expected but still rise 18.9 percent in 2008 and another 20.5 percent in 2009, according to a revised forecast issued Wednesday (Nov. 26) by market research firm iSuppli Corp.
Citing the economic climate and financial crisis, iSuppli (El Segundo, Calif.) said it now forecasts global LCD-TV shipments will amount to 93.4 million units in 2008, down nearly 6 percent from its previous prediction of 99 million. The firm also reduced its previous forecast of 124 million units for 2009 to 112.6 million units for the year.
In a statement, iSuppli television analyst Riddhi Patel said the economic downturn has had a "knock-on effect" on global economies, slowing gross domestic product growth, increasing inflation and a slowing consumer spend around the world.
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"The current crisis is impacting spending in all markets, including LCD TVs," Patel said. "The continued impact of the recession and credit crunch in the United States and Europe and rising inflation in many emerging markets will slow down sales growth for LCD TVs in 2009 as well."
But strong customer demand and declining average selling prices, combined with marketing and promotional efforts by the major brands, will continue to spur a rise in shipments, Patel said.
The fourth quarter of 2008 will be weak for LCD-TV sales compared to previous expectations, iSuppli said. OEM shipments to the sales and distribution channels will continue to be robust, but consumer purchases will be weak, the firm said.
In early 2009 the channels will be holding more than nine weeks of inventory, a level that could vary by region, iSuppli said. To clear out the existing inventories, the channels will be forced to reinstate aggressive holiday prices, according to the firm.
As most regions continue to struggle with the financial environment, the first half of 2009 is expected to be slow as well, iSuppli said. Conditions are expected to improve in the second half of 2009 because the mature regions will begin to show first signs of a recovery during the third quarter, the firm projected.