WitsView, a division of TrendForce, has reported that global shipments of branded TV sets currently show a year-on-year decline of 4.0%, following the release of third quarter figures.
Strong results (to the tune of 54.99 million units) in the third quarter of 2017 may show an increase of 16% that business from the previous quarter, yet analysts expect an overall decline of 4.2% in year-on-year sales, despite business largely picking up in the second half of the year.
The third quarter is traditionally a busy period for TV shipments. Furthermore, the recent recovery in panel prices reportedly is gradually taking away the cost pressure on TV brands, bolstering their confidence in expanding their shipments.
WitsView states that it expects the TV market to remain positive through the fourth quarter. Nevertheless, the strong results in the second half of this year are unlikely going to offset three consecutive quarters of year-on-year declines.
“…the strong results in the second half of this year are unlikely going to offset three consecutive quarters of year-on-year declines.”
The company has therefore has lowered its estimate of this year’s annual global shipments to 210 million units, down from the 214 million units originally forecast.
Samsung prioritises profit
The report also revealed that Samsung’s annual shipments are expected to drop by 9% as the manufacturer shifts its focus on maximising profit rather than growing shipments.
Despite facing stiff competition in the premium OLED segment of the TV market, the company’s third-quarter TV shipments rose 10.6% from the second quarter – largely on account of its ability to negotiate down panel prices and make adjustments to the end market prices.
WitsView states that going forward Samsung’s TV business will become more profit-oriented with product development focusing on high-resolution and large-size TV sets for the mid-range and high-end market segments. Its latest estimate puts Samsung’s 2017 shipments around 43.5 million units, which is considerably lower than its 2016 total of nearly 48 million.
Hisense remains solid, Sharp loses momentum
Sony’s competitors in the OLED market, LG and Sony, have been able to expand their shipments on a quarterly basis this year due to the success of its offerings. WitsView expects LG and Sony either to keep their annual shipments at the same levels as last year’s or post slight growths.
In the China market, the TV market has showed signs of recovering following the demand freeze of the first half of 2017 and Hisense has been able to position itself as the fourth largest TV vendor, benefiting from considerable domestic and overseas orders.
All other Chinese TV brands also posted sequential quarterly increases in their third-quarter shipments and are optimistic that the gradual slide in panel prices will drive growth in the fourth quarter as well.
WitsView reports that Sharp has lost momentum since third quarter and needs to keep expanding its presence in China to regain shipment growth. It position in the global stakes fell from fourth place for the second quarter to eighth, despite the efforts of its new parent company to introduce initiatives to grow the brand.