Global TV Sales to Rise 10.2 Percent in 2012, TPV Says
The global TV market will shake off weak demand this year to post a 10.2 percent gain in unit shipments in 2012 to 227 million units, TPV Technology CEO Jason Hsuan told analysts. TV unit shipments are forecast to grow 7.6 percent this year to 206 million, a sharp departure from a year ago when they increased 31.7 percent to 191.7 million, he said.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
TPV sees unit shipments growing by 8.1 percent to 245.4 million in 2013, by 6.4 percent in 2014 to 261.1 million and by 3.4 percent in 2015 to 270.1 million, Hsuan said. TPV is expected to benefit from its new joint venture with Philips to produce and sell Philips-brand TVs in most markets outside North America and India, where other Philips license agreements are in force. “Robust economic growth in the emerging markets will boost demand for TV display products,” Hsuan said. The demand will lead to double-digit growth during the next two years in emerging markets, including China, where the sales increase in 2012 will be limited to 10 percent because of the overall “global economic slowdown,” Hsuan said.
Global PC monitor shipments will register low-single-digit increases for the next several years amid growing demand for tablets and notebook PCs, Hsuan said. The PC monitor market will grow 2.2 percent in 2012 to 182.4 million units from 178.5 million units this year and reach 199.8 million by 2015, Hsuan said.
TPV’s Q3 net profit slipped to $9.3 million from $27 million amid rising operating expenses, which jumped to $80.1 million from $64.3 million, TPV said. R&D costs also rose to $30 million from $28.9 million, the company said. For the nine-month period, capital costs jumped to $141.2 million from $116 million.
TPV’s Q3 revenue slipped to $2.85 billion from $2.95 billion a year ago despite a rise in PC monitor and LCD TV shipments because average selling prices in PC monitors dipped to $104 from $111, TPV said. In LCD TVs, ASPs fell to $291 from $301, TPV said. LCD TV-related revenue declined to $954.2 million from $972.1 million, while PC monitor sales dropped to $1.56 billion from $1.59 billion. TPV TV unit shipments jumped slightly to 3.27 million from 3.22 million, while PC monitors unit shipments rose to 15 million from 14.3 million, the company said. TPV’s AOC brand accounted for 20.8 percent of Q3 revenue, up from 12.2 percent a year earlier, while its ODM business generated 79.2 percent of sales, down from 87.6 percent. In PC monitors, where TPV sells products under the AOC and Philips brands, those brands represented 35.3 percent of revenue, up from 24.1 percent, while ODM was 64.7 percent, a decrease from 75 percent.
TPV sales in North America decreased to $497.9 million from $522.9 million a year ago on flat growth in shipments of 3 million PC monitors and TVs, the company said. Sales in China, TPV’s largest market, declined to $914.4 million from $1 billion despite a gain in shipments to 7.7 million units from 7.3 million. The “looming European debt crisis will continue to cloud consumption and investment, rendering a near-term recovery difficult,” Hsuan said. “In our industry, demand for LCD TVs has been weak year-to-date and it is expected that the seasonal uptick in demand in the fourth quarter will not be strong. As companies hold back on IT expenditure, while consumer demand in developed markets has shifted tablets and mobile devices, demand for PC monitors is expected to be mute.”