Austin, Tex. While revenue for TV IC manufacturers declined 3 percent quarter-to-quarter due to average selling price (ASP) margin declines in second quarter 2007, TV IC shipments for video processors, MPEG video processors and de-interlacer/scalar devices increased 12 percent quarter-to-quarter and 51 percent year-to-year, according to display market research and consulting firm DisplaySearch.
The TV IC market is forecast to reach $1.27 billion in 2007, up two percent year-to-year,
due to faster ASP declines on unit volume growth, according to DisplaySearch. MPEG2-based video processors had the largest quarter-to-quarter unit and revenue growth.
"Revenue for TV IC manufacturers was slightly below expectations because TV semiconductor suppliers faced tremendous margin pressure from high-volume, low-cost brands like Vizio, which became the #1 selling brand in the North American market in quarter two 2007. These low-cost TV market pricing pressures caused a corresponding ASP decline for quarterly pricing demanded by TV OEMs from their IC suppliers," said Vish Nayak, vice president of display electronics at DisplaySearch, in a statement.
Click the link for the Top five TV IC supplier ranking for quarter two 2007
DisplaySearch expects revenue and unit shipments to pick up in the second half of 2007
"due to aggressive promotional plans and inventory build-up by TV OEMs for the traditionally strong year-end holiday quarter and normal seasonal effects of a technology transition from analog to digital TVs by consumers." Click the link for more information about DisplaySearch's Quarterly TV Electronics Report.