LCD TV Sales to Rise in First Half 2010

By Dena Cassella January 19, 2010

Reuters reports that the LCD TV slump has started to rebound thanks to increase demand for LCD TVs in China and a shortage of glass that kept screen prices high. There are also a number of important sporting events in the first half of 2010 that are expected to drive increased sales of LCD TVs around the globe including the Winter Olympics, the Super Bowl, and the World Cup.

Analyst Lee Hak-moo from Mirae Asset Securities said, “We are heading into strong sales season in China, starting from the Lunar New Year holidays to the labor day. There are also the Super Bowl, the Winter Olympics, and the World Cup lined up in the coming months. Those sports events can bolster TV demand and could bring strength in the first half.”

Reuters reports that China is set to become the largest consumer of LCD TVs in 2011 and many manufacturers are putting significant investments into their LCD factories in 2010 to build capacity for the expected boom in 2011.

Despite the optimistic outlook for 2010 and 2011, things were not so good in the industry in 2009. Earnings reportedly declined in the October-December quarter after reaching a peak in Q3 2009. Reuters reports that LG is expected to post earnings of about $394 million for Q4 2009. Taiwan’s AU Optronics is expected to post a small profit in Q4 2009, an improvement from a loss in the same quarter of 2008.

New technologies are expected to drive sales of LCD TVs in 2010 as well. The most important new technology is 3D panels. 3D TVs were out in force at CES in many different price points. A number of networks also announced new 3D channels would be coming in 2010 and in 2011 to take advantage of the new 3D TV availability. LED-backlit sets are also expected to help drive LCD TV sales.

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