TV shipments slow in Q3, now there's too much stock

TV shipments have slowed down significantly in the third quarter of 2010, leading to fears about overstocking, according to the latest report by research firm DisplaySearch.

The Quarterly Advanced Global TV Shipment and Forecast Report revealed that global TV shipment growth slumped to 9 percent in the third quarter of this year compared to the year previous. While this is still growth, it is much less than that reported in previous quarters, which saw 20 percent or above growth, including 26 percent in the second quarter.

Shipments in the third quarter were at 59.8 million, but sales are not meeting shipments in North America, Western Europe, and China. Worse than expected sales occured during the World Cup season, leading to larger inventories that need to be flogged off.

Many of the vendors with large TV stock will be hoping to sell it off during the holiday season, which is traditionally the strongest period for panel shipments and sales throughout the year. We may see more offers available, however, in order to clear some stock.

Despite the larger inventory and slower shipments, most TV technologies are doing well. Plasma TV shipments were up 35 percent year on year to 4.8 million units. LCD TV shipments were up 22 percent to 45.7 million units compared to last year.

The CRT TV market continued to shrink, however. It was down 32 percent compared to the same time last year, but still saw just over 9 million shipments in the third quater.

The report also found that Samsung was the number one brand, in terms of revenue, in the global TV market. LGE came in second, while Sony, Panasonic, and Sharp took the third, fourth and fifth slots respectively.