It’s Only Common Sense: The Importance of Setting Realistic Expectations
Marcy’s Musings: The Relentless Pursuit of Perfection
Dan’s Biz Bookshelf: ‘Do/Start'
China and North America TV Shipments Fall Sharply in Q3 2017
November 20, 2017 | IHS MarkitEstimated reading time: 2 minutes
The impact of higher LCD TV panel prices at the beginning of 2017 continued to weigh on retail demand for LCD TVs into Q3 by way of slower retail price erosion, particularly in China and North America, the two most price sensitive regions. However, demand in other regions showed signs of growth, especially in Europe and most emerging regions.
According to the latest findings from TV Sets Intelligence Service by IHS Markit, global TV shipments declined 5% year-over-year to 54.8 million units in Q3 2017, while revenues increased by 1% and average selling prices were up 6 percent due to growth in average size and 4K mix improvement.
“Demand in China has been negatively impacted by much slower retail pricing erosion for TVs, and fewer promotions as brands seek to protect profit margins.” said Paul Gagnon, executive director of TV sets research at IHS Markit. “Likewise, the high price sensitivity and minor price erosion in North America led to a 10% decline in year-over-year shipments in Q3 ahead of the important Black Friday holiday shopping season. We expect that the more conservative promotions on Black Friday for TVs will diminish the potential volume growth this year in the US.”
Average size growth has also slowed in recent quarters as the slower price erosion impacts consumer purchasing decisions when deciding how large a screen size to trade up to, IHS Markit analysis shows. The average size of a TV shipped in Q3 2017 increased 1.7% to 42.1 inches, although when combined with the much reduced price erosion, helped TV revenues increase year-over-year for the first time in three years. The growth of 4K also contributed to the positive revenue result, with 4K mix increasing to 35% of units and 64% of revenues.
On a brand basis, due to the poor demand results in China, Chinese TV brands have been aggressively pursuing more business overseas, IHS Markit says. Hisense and TCL both significantly increased market share worldwide due to strong growth outside of China. Samsung and LG Electronics are the top TV brands on a unit and revenue share basis worldwide, but TCl and Hisense have risen to numbers three and four respectively, both increasing share from a year ago to their highest TV shipment share yet. Samsung and LGE each also led on a revenue basis, while Sony grew its revenue share at number three to the highest level since 2011 on growing premium TV sales, including OLED TV.
About IHS Markit
IHS Markit is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 key business and government customers, including 85 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.
Share on:
Suggested Items
Driving to the Future: A Pivotal Role in Standards for IPC China Automotive Electronics Committee
05/20/2025 | Sydney Xiao, IPCIn 2024, China’s automotive industry reached new heights. According to the China Association of Automobile Manufacturers (CAAM), the annual production of passenger vehicles surpassed 31 million units, marking a 4% year-over-year growth. Meanwhile, the production of new energy vehicles exceeded 12 million units, a remarkable 36.4% increase. Behind these impressive numbers lies a collective effort fueled by technological innovation, industrial upgrades, and the dedication of countless industry professionals.
U.S., China Announce New Trade Deal, Temporary Tariff Relief
05/12/2025 | IPCThe White House announced a new trade agreement with China on May 12 aimed at reducing trade tensions and providing temporary tariff relief for manufacturers.
Localized Automation Becomes a Tariff Storm Safe Haven, but U.S. Smart Factory Build-Out Costs Far Exceed China’s
05/09/2025 | TrendForceTrendForce’s latest “Human-Machine Technology Report” points out that although the 90-day delay on the U.S. reciprocal tariffs announced by the Trump administration in early April 2025 offers temporary relief, it has already triggered lasting shifts in global manufacturing and supply chain strategies.
Primech AI Plans Production of 300 HYTRON Robots through its China Manufacturing Expansion
05/09/2025 | Globe NewswirePrimech AI Pte. Ltd., a subsidiary of Primech Holdings Limited announced a significant expansion of its manufacturing capabilities through a strategic manufacturing partnership in Guangdong Province, China.
Choosing the Right Strategic Path
04/29/2025 | Marcy LaRont, PCB007 MagazineTom Yang, CEO of CEE PCB, discusses the current economic challenges, noting reduced purchasing power post-pandemic. He highlights the growing demand for HDI in consumer electronics due to AI growth. Tom also expresses concerns about tariffs under the new U.S. administration, prompting CEE to diversify production locations, including new plants in Southeast Asia. He emphasizes the need for PCB manufacturers to adapt strategically amidst rising costs and fierce competition, particularly for mid-sized shops facing unique challenges in the industry.