Although 2011 has been generally seen as the year for LED TV suppliers to shine, some industry observers have noted that leading TV brands have been shifting their focus back to CCFL-backlit models. Brands such as Samsung and Sony will introduce new CCFL-backlit models in third-quarter 2011. North American brand, Vizio, has also strengthened their CCFL stock to retain market share. The market penetration for LED TV is expected to be less than 40% for second-quarter and third-quarter 2011. Hence the entire supply chain will be affected by oversupply concerns.
It is the general view for many firms that penetration for LED TV will reach 50% in 2011, but it is most likely tto occur only in the fourth quarter after upstream firms increase shipments in the third quarter.
LED TV demand has been waning despite the upturns of the global economy. A shortened Labor Day holiday in China also demonstrated a demand below market expectations. Markets in Europe and the US have been clouded with economic concerns. The Japanese market has not recovered from the earthquake and the ongoing political unrest in the Middle East is also a growing concern. Therefore TV brands are shifting emphasis on maintaining gross margins by lowering costs. Hence, the product strategies have turned away from LED into CCFL-backlit TVs, according to industry sources.
Samsung has been a strong supporter of LED TV but has been reorganizing marketing plans for CCFL models. Sony followed suit. Also, several brands are introducing 3D CCFL-backlit TVs that are in the same price range as LED TVs. Some firms are adjusting their shipments for LED TVs in 2011 from 111 to 93 million units.
Backlight module (BLU) maker Coretronics has revised its forecast for LED TV's penetration in 2011. Diffuser plate maker Entire also predicts a slower growth. Formosa Epitaxy (FOREPI) and Unity Opto Technology both reduced their target shipments for second-quater 2011. However, industry leader AU Optronics (AUO) remains optimistic.
LCD TV market shifting back to CCFL
Photo: CJ Liu, Digitimes, May 2011
Article translated by Jackie Chang
