With the American economy still up and down, it is a tough atmosphere for a premium brand in consumer electronics. However, people in North America are buying more LCD TV’s - Q1’09 LCD TV shipments surged 23% Y/Y to 7.2M units according to preliminary results. Additionally, NPD Group DisplaySearch has obtained some surprising new numbers that point to some extraordinary growth for Vizio in Q1 FY09 that could indicate problems for Sony and Samsung. Vizio returned to the #1 ranking in LCD TVs for the first time since Q2’07, overtaking Samsung and Sony in the process and improving their unit share from 13% to 19%.
“Vizio is a relatively young TV brand in the US marketplace, but their strong alignment with mass merchant and warehouse club retailers seemed to put them in the right place at the right time with growing channels,” said Paul Gagnon, DisplaySearch Director of North America TV Research. “As LCD TV panel makers quickly return to nearly full capacity and simultaneously push panel price increases, the industry will have to carefully monitor the impact that slower retail price declines may have on consumer demand during the second half of the year to avoid a potential repeat oversupply situation.”
Premium brands like Samsung and Sony lost share as consumers became more price sensitive, looking both for better value and smaller screen sizes than last quarter. This tells me that Sony needs to release a nice $350 - $400 32″ 1080p with two HDMI ports and blow away consumers. Nonetheless, Sony and Samsung continue to be stronger in the 40” and larger screen sizes, as well as offering advanced features such as 1080p resolution, 120 Hz or higher frame rates, and higher-quality image processing. Unfortunately, as some of this advanced tech is still not mainstream, its exclusivity all of which adds to the retail price and turns away consumers.
Sony was the #3 LCD TV brand in North America with 36% Y/Y shipment growth and was ranked #3 in overall flat panel share. Here are some charts courtesy of DisplaySearch of the Q1’09 results:
What recommendations do you have for Sony to regain the top spot?
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Christopher
With the American economy still up and down, it is a tough atmosphere for a premium brand in consumer electronics. However, people in North America are buying more LCD TV’s - Q1’09 LCD TV shipments surged 23% Y/Y to 7.2M units according to preliminary results. Additionally, NPD Group DisplaySearch has obtained some surprising new numbers that point to some extraordinary growth for Vizio in Q1 FY09 that could indicate problems for Sony and Samsung. Vizio returned to the #1 ranking in LCD TVs for the first time since Q2’07, overtaking Samsung and Sony in the process and improving their unit share from 13% to 19%.
“Vizio is a relatively young TV brand in the US marketplace, but their strong alignment with mass merchant and warehouse club retailers seemed to put them in the right place at the right time with growing channels,” said Paul Gagnon, DisplaySearch Director of North America TV Research. “As LCD TV panel makers quickly return to nearly full capacity and simultaneously push panel price increases, the industry will have to carefully monitor the impact that slower retail price declines may have on consumer demand during the second half of the year to avoid a potential repeat oversupply situation.”
Premium brands like Samsung and Sony lost share as consumers became more price sensitive, looking both for better value and smaller screen sizes than last quarter. This tells me that Sony needs to release a nice $350 - $400 32″ 1080p with two HDMI ports and blow away consumers. Nonetheless, Sony and Samsung continue to be stronger in the 40” and larger screen sizes, as well as offering advanced features such as 1080p resolution, 120 Hz or higher frame rates, and higher-quality image processing. Unfortunately, as some of this advanced tech is still not mainstream, its exclusivity all of which adds to the retail price and turns away consumers.
Sony was the #3 LCD TV brand in North America with 36% Y/Y shipment growth and was ranked #3 in overall flat panel share. Here are some charts courtesy of DisplaySearch of the Q1’09 results:
What recommendations do you have for Sony to regain the top spot?
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