Q3 Global TV Set Revenue Rose 1%, Despite 5% Unit-Shipment Decline, Says IHS

most price-sensitive markets, said IHS Markit in a report. Demand in other regions showed signs of growth in Q3, especially in Europe and most emerging markets, it said. Global TV shipments in Q3 declined 5 percent year-over-year to 54.8 million units, and revenue increased 1 percent and average selling prices were up 6 percent due to the growth in average screen sizes and the bigger “mix” of premium-priced 4K sets, it said. “Demand in China has been negatively impacted by much slower retail pricing erosion for TVs, and fewer promotions as brands seek to protect profit margins,” said Paul Gagnon, IHS executive director-TV sets research, in a statement. “Likewise, the high price sensitivity and minor price erosion in North America led to a 10 percent decline in year-over-year shipments in Q3 ahead of the important Black Friday holiday shopping season.” IHS expects that “the more conservative” Black Friday TV promotions compared with years past “will diminish the potential volume growth this year” in the U.S., said Gagnon. The average screen size of a TV shipped in Q3 increased 1.7 percent from a year earlier to 42.1 inches, said IHS. When combined with the much-reduced price erosion, that helped TV revenue increase year over year for the first time in three years, it said. The growth of 4K also contributed to the positive revenue result, with 4K mix increasing to 35 percent of units and 64 percent of revenue, it said.