Sharp Takes Top Position from Vizio in Hot North American LCD TV Market

Nov 5, 2007 20:19 Motoaki Itou, Nikkei Electronics

DisplaySearch of the US announced Nov 1, 2007, North American flat panel TV sales rankings by brand in the third quarter (3Q) of 2007.

Vizio Inc, which gave a serious impact to other TV manufacturers by taking over the lead in both thin-panel and LCD TV market shares in the preceding 2Q, dropped to second in both rankings, despite increased shipments compared to the 2Q.

Instead, Samsung Electronics Co Ltd of Korea topped the overall flat panel TV market and Sharp Corp won the first place in the LCD TV segment. In the PDP TV segment, Matsushita Electric Industrial Co Ltd maintained its top position following the 2Q.

In North America, Sharp won the largest LCD TV unit sales share of 11.3%, followed by Vizio's 10.9%, Samsung's 10.7%, Sony Corp's 9.7%, Funai Electric Co Ltd's 8.1% and the others' 49.3%. All the leading five manufacturers saw their unit sales grow both quarter-on-quarter (QoQ) and year-on-year (YoY).

The North American LCD TV market is rapidly expanding as evidenced by the 34% QoQ increase and an 82% YoY rise in overall unit sales combining sales at every manufacturer.

Japanese manufacturers' recovery was outstanding in particular in the 3Q, with Sharp posting a 65% QoQ growth and Sony marking a 108% QoQ rise. In contrast, Vizio's sales growth was no more than 18% QoQ. This is partly because of a seasonal factor that a membership discount store, which is also Vizio's major sales channel, does not proactively carry out sales activities in the 3Q, said DisplaySearch.

Considering shares by screen size and factors behind share fluctuation at each company that DisplaySearch disclosed, despite the lower ranking, it is evident that Vizio still significantly influences other manufacturers' sales strategies. What drove Sharp to win the largest share are products smaller than 32-inch, which marked a 77% QoQ sales growth in the 3Q.

Supply of such small products was not meeting the strong demand and resulted in Sharp's favorable sales. By size, Sharp won the largest shares in 19-, 26- and 52-inch products.

Among the sizes that are considered to be the most in demand for TVs found in living rooms, Vizio had the largest share in 32-, 37- and 42-inch products, while Sony did in the 40-inch class (combined sales of 40- and 42-inch products) as well as the 46-inch class (combined sales of 46- and 47-inch products). Vizio is staying strong.

However, the factor behind the Sony's increased units sales in the 3Q hints a future strategy against Vizio. Sony introduced its new "M series" products, which assume sales through large-scale retailers like Wal-Mart, and succeeded in doubling its unit sales thanks to this strategy. The company introduced products that it developed targeting Vizio's specialty markets and started a one-sided battle using its strong brand power as a weapon.

Under these circumstances, where the full-scale penetration of thin-panel TVs into general households is advancing and the market is growing rapidly, there will finally be a showdown in the market starting from the Thanksgiving Day sale season in the fourth week of November.

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