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As LCD TV demand growth slows, manufacturers forced to adapt

March 13, 2013|By Andrea Chang
  • A customer shops for flat-panel televisions at a Best Buy in San Francisco.
A customer shops for flat-panel televisions at a Best Buy in San Francisco. (Justin Sullivan / Getty…)

Television makers are changing their game plans to adapt to slowing demand for LCD TVs, including developing strategic alliances and expanding product lineups to include a wider selection of panel sizes.

According to the latest quarterly television report from NPD DisplaySearch, panel makers are trying to avoid an oversupply of LCD TV panels. By moving to larger screen sizes, they're hoping to decrease total unit shipments without hurting revenue.

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“Consumers are focused on TV prices, while brands have been focused on TV features. This disconnect has resulted in reduced demand and profits for TV supply chain participants in 2012,” said Deborah Yang, NPD DisplaySearch's research director.

“A misalignment in panel-size portfolios between buyers and sellers could result in supply constraints. Panel makers and TV brands are trying to strengthen their business portfolios and enhance their bargaining power with supply-chain participants in order to improve profitability and gain a competitive edge.”

The market research firm is forecasting 4% year-over-year growth in LCD TV panel shipments this year. It said Samsung and LG, along with Chinese television makers, are expected to have "aggressive" TV shipment plans.

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