IDC predicts shipments of plasma and LCD televisions in Asia/Pacific (excluding Japan) will cross 11 Million units mark in 2007

Shipments of plasma and LCD televisions in Asia/Pacific (excluding Japan) reached close to 6.9 million units in 2006. IDC expects continued growth in 2007 as the region surpasses 11 million units, which is a growth of about 61% year-on-year.

"Asia's large installed base of traditional CRT televisions continue to make it a very attractive market for flat-panel television makers. Falling unit prices and the gradual transition to digital terrestrial television broadcasts will continue to encourage more owners of CRT TVs to upgrade." said Nur Hayati Ali, Market Analyst of Asia/Pacific Personal Systems Research at IDC. "The upcoming 2008 Beijing Olympics is also expected to keep cash registers ringing next year. Given that the event will be held in China, interest and coverage from the rest of Asia region is likely to be at its peak.”

Growth in China is expected to be especially robust over the next two years as the country prepares to host the 2008 Beijing Olympics. Positive consumer sentiments and heavy vendor promotions leading up to the event will ramp up sales. Television makers are also preparing for strong demand ahead as they set up more domestic plants. Elsewhere in the region, supply will continue to expand as panel production at the newer-generation 7.5G and 8G plants ramp up in end-2007 and 2008.

LCD televisions enjoyed strong growth in Taiwan last year thanks to steep price cuts. In Hong Kong, robust demand from hotels and other property developments also helped LCD sales. In most markets including Singapore, Malaysia, and Hong Kong, the World Cup proved disappointing for vendors while the effects of the Lunar New Year and year-end sales were much more encouraging. In Australia, consumer sentiments towards LCDs brightened as the form factor's picture quality improved and prices fell.

Last year in the region, Samsung and Hisense led the LCD television market, while Panasonic and LG Electronics led the plasma market, in that order. In terms of screen sizes, the mainstream size for LCD televisions in 2006 was 30-35in., which was followed closely by the 25-29in. sizes. Plasma televisions continued to sell mostly 42-49in. screens last year.

Plasma televisions fared much poorer than its LCD counterpart in 2006 due to the steep price cuts implemented for the latter in the second half of 2006. The media hype over HD last year also heavily favored LCD televisions, as most plasma models did not come with high-definition resolutions then. IDC is forecasting a 35% CAGR for LCD televisions and a 7% CAGR for plasma televisions over the 2007-2011 period.

IDC's flat-panel television study provides a comprehensive view of the current market situation and future outlook of the Asia/Pacific plasma and LCD television industry. The study covers nine major countries and sub-regions, both the plasma and LCD form factor, their respective sizes, and the vendors that operate in each market.

IDC