Flat panel TV sales grow as prices drop

The segment is hot, hot hotStrong demand for LCD TVs and lower pricing are both contributing to increased sales of the units.

Market research company DisplaySearch said that in Q3 2009, sales were up year on year in terms of units for the first time in a year.

And next year that growth will continue, with the analysts predicting total shipments will rise from 205 million units this year to 218 million units next year. That represents a six percent increase.

The demand is growing for flat panel TVs in China and Japan, while demand will also grow in Western Europe as a result of analog to digital broadcast changes.

The good news for the consumer is that DisplaySearch expects average selling prices for all TV tech to drop nine percent this year. That trend will continue next year but not at such a percentage drop.

“LCD prices have been falling by 20 to 30 percent year on year at most screen sizes,” said Paul Gagnon, director of North American TV research at DisplaySearch. “The price declines are a strong influence on the robust demand, but are coming at the expense of profitability for many in the supply chain, especially at the brand and reseller level.”

DisplaySearch believes, like Sony, that 3D will be a further catalyst for growth in the market. Consumers are also becoming more conscious of high frame rate LCD TVs, a factor that will boost companies’ revenues.