DisplaySearch reported in its latest Quarterly Global TV Shipment and Forecast Report that China FPD TV shipments reached a record high of 9.6 million units in 2007, including 8.8 million units of LCD and 0.8 million units of PDP (Plasma) TVs. In 2007, LCD TVs and PDP TVs in China grew 83% Y/Y and 43% Y/Y, respectively. In 2008, total TV shipments are expected to grow 4% to 41M, but CRT TV shipments in China are forecast to drop from 30 million units in 2007 to 24 million units in 2008.

In 2007, most non-Chinese foreign brands left the CRT TV business in China, but priced FPD TVs more aggressively than before. “There had been at least a 30% pricing gap between foreign brands and domestic players, but it decreased to less than 20% in 2007,” indicated Bing Zhang, TV Market Research Director for DisplaySearch in China. Foreign brands, like Samsung and Sony, exhibited strong growth in FPD TVs, with unit shipment share of 40.1% in 2007, up from 33.6% in 2006. The shares of domestic players in FPD TVs decreased from 66.4% in 2006 to 59.9% in 2007. Hisense and Samsung topped the domestic and foreign brands with unit shipment shares of 12.1% and 7.2%, respectively.

DisplaySearch examined the following China TV market trends in the report:
  LCD TVs - The average selling price of 32” LCD TVs decreased less than US$800 at the end of 2007. 32” LCD TVs remain the mainstream product with a 33% market share in China. LCD TVs smaller than 26” and larger than 40” grew moderately in 2007. Meanwhile, 19”W and 22”W LCD TVs, which use adapted LCD monitor panels, grew rapidly. For large-size 40-42” LCD TVs, shipments expanded quickly as the LCD TV brands allocated sufficient panels from Gen 7 TFT LCD plants in Asia. In 2007, 40-42” accounted for 25% of the total LCD TV market in China and 46-47” LCD TV captured an 8% share, as shown in Figure 1.
  PDP TVs - 32” ED (Enhanced Definition) PDP TVs emerged first in the world in China in 2H’07. In the selling season of Q4’07, 32” ED PDP TVs grabbed 26% of all PDP TV shipments in 2007 due to aggressive promotions (less than US$666 ASP) by leading domestic TV brands such as Hisense, Changhong, Haier and Konka. 42” PDP remained the mainstream size for PDP TVs with a 52% share. Although several brands introduced 52” LCD TVs, a large price gap of approximately US$1350 between 52” LCD TVs and 50” PDP TVs influenced many buyers to shop for the less expensive 50” PDP TVs.
  According to Bing Zhang, the China FPD TV market will exhibit a 29% compound annual growth rate from 2007 to 2012. The main driving forces are big events, like the Beijing Olympic Games in 2008 and the World EXPO in Shanghai in 2010, as well as anticipated rapid declines of FPD TV prices. FPD TV shipments in China will reach 17 million units in 2008, split between 15.5 million LCD TVs and 1.5 million PDP TVs. “2009 will be the year when LCD TVs will surpass CRT TVs in China for first time,” Zhang added. DisplaySearch also forecasts that Rear Projection TVs will fade away from the China market after 2009. Figure 2 shows the China TV demand forecast by technology.
  The China FPD TV market will continue to move to larger sizes and higher definition such as 1080p (Full HD). The average size of LCD TVs is expected to increase from 34.4” in 2007 to 36.1” in 2012. PDP TVs will grow from 41.6” in 2007 to 44.7” in 2012. Meanwhile, the share of 1080p LCD TVs is expected to increase from 10% in 2007 to 40% in 2012, and 1080p PDP TVs will increase from 2% of all PDP TVs sold in China in 2007 to 30% in 2012.

These trends and many other aspects of the Chinese TV market will be discussed at the 2008 DisplaySearch China HDTV Conference, which will be held on May 20-21, in Guangzhou at the Shangri-La Hotel. Visit the conference website www.displaysearch.com.cn for details and updates.

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