Even though it had its traditional strong end to the year, the US TV market for 2013 as a whole was hugely disappointing, showing a 9% year on year fall according to IHS Technology.
The U.S. Flat-Panel TV Market Continues on a Declining Trend report showed that there was low demand among Americans throughout the year with shipments falling to 34.0 million units, down sharply from 37.5 million in 2012. As an indication of the market’s softness, shipments during every quarter in 2013 were down from their equivalent periods a year earlier.
In terms of composition, the US TV market in 2013 consisted entirely of liquid-crystal display (LCD) and plasma display panel (PDP) sets, both of which lost volume in 2013 from a year earlier. LCD TV shipments slid to 31.9 million units, down 6% while PDP TV shipments plunged 42% to 2.1 million. That analyst added that the lower overall figures for the year stem not only from the significant decrease of plasma TVs but also because of continued weakness in the LCD TV segment.
As one would expect, the fall in shipments precipitated a commensurate fall in manufacturer revenues which were down 12% year on year percent to $23.5 billion from $26.9 billion in 2012. IHS found that even an increase in the shipments of large-sized flat-panel models with connected TV capability and full high-definition 1080p resolution could not offset the loss of shipments on the whole and the market experienced a general 3% decline in average selling prices during the year.
“The TV market in the United States has reached a point of saturation following a period of huge growth in years past, especially as the flat-panel-TV craze set in,” noted IHS TV systems analyst Veronica Gonzalez-Thayer, commenting on the trends revealed. “As a result of the market’s maturity, and also because of lingering uncertainties in the economy, American consumers have been less eager to rush out and buy new replacement TV sets.”