LED Penetration in LCD TV Panels Reach 33% in Q1: DisplaySearch

Taipei, May 27, 2011 (CENS)--Global shipments of liquid crystal display (LCD) TV panels with light-emitting diode (LED) backlights reached 16.4 million units in the first quarter, a slight decrease from 16.6 million units in the fourth quarter of 2010, according to DisplaySearch.

The major display-market research firm's latest Quarterly Large-Area TFT LCD Shipment report showed that LED penetration in LCD TV panels reached 33% in the first quarter, a healthy growth from 29% in the fourth quarter of 2010.

However, LCD panel manufacturers have adjusted their targets for 2011 LCD TV panel shipments with LED backlights down from 53% to 47%. Key reasons for this change in outlook, DisplaySearch said, include the current sell-through climate, price erosion in premium LED models, making them less attractive, and a shift in strategy towards three-dimension (3D) panels. New LCD TV panel manufacturers are focusing on cold cathode fluorescent lamps (CCFL) production to ensure stability in the business lines as they ramp up their sixth-generation (6G) and 8G lines.

"Despite some build-up of LED-backlit TV panel inventories in the second half of 2010, the industry has recognized that LED backlighting is an irreversible trend, with benefits such as lower power consumption and slim form factor," noted David Hsieh, DisplaySearch Vice President and research leader for large-area panels. "As a result, LCD TV panel makers are continuously reducing LED backlight costs in order to increase shipments."

However, Hsieh added, although the growing awareness of LEDs among consumers has encouraged panel makers to increase LED performance and continuously reduce costs, the growth in LED backlighting does not mean that CCFL would no longer be in demand. "There are still many consumers and emerging markets that are very price-sensitive," he explained.

LG Display continued its leadership in LED-backlit LCD TV panel shipments in the first quarter, shipping more than four million units for a 27% share. Samsung closely followed with 24%, and Sharp and AU Optronics (AUO) each had 18%.

LED Backlight Penetration in LCD TV Panel Shipments (Q1 vs. Q2)
LED Penetration	Q1' 10	Q2' 10	Q3' 10	Q4' 10	Q1' 11	Q2' 11	Q3' 11	Q4' 11
Q1 Report	9%	19%	26%	29%	36%	50%	59%	62%
Q2 Report	9%	19%	26%	29%	33%	38%	52%	57%
Source: DisplaySearch, May 2011