Aggressive pricing has opened up the world of LCD-TV to virtually all consumers. But as a result, price margins for premium brands have become diluted as the market has grown saturated with upstart vendors looking to get a piece of the pie.
Adding new features to LCD-TVs not only helps to differentiate the sets, it also increases the possibility of charging a premium for the sets.
Internet Enabled
An IETV is defined as a set that has the capability to connect to the Internet either through a wired or wireless connection.
iSuppli believes that IETVs will emerge as a key feature that consumers will demand in the coming years. However, only 14.7 million IETVs were estimated to have shipped in 2009. This is because brands have been focusing more on promoting other features, such as LED backlighting and 120Hz/240Hz.
Just the same, promotion of IETVs will grow in the coming years as brands strive to slow the rate of price declines and entice consumers to replace their current-generation flat-panel TVs with new sets. Because of this, iSuppli forecasts IETV units will grow to 149.0 million by 2014, rising at a Compound Annual Growth Rate (CAGR) of 58.9 percent from 14.7 million units in 2009.
The Third Dimension
The buzz from the TV industry is focused on 3-D-ready sets. Images from 3-D TVs are much more real and advanced than those from conventional televisions. Meanwhile, standards seem to be falling in place, making the market more attractive for brands and consumers. With brands showing commitment to the technology, the number of 3-D channels rising, movie content increasing and gaming content emerging, 3-D TV soon will proliferate and become a reality.
This is great news for television brands as it means increased profitability and a new way for these vendors to set themselves apart from the competition. While many more sets must be purchased in order to establish critical mass for the market, iSuppli predicts about 4.2 million unit shipments in 2010 as early adopters grab these sets. By 2014, iSuppli sees more than 60 million sets shipping—an amazing growth curve that has brands salivating.
Turn On a Light
While IETV and 3-D represent long-term solutions to the price declines and to the challenge of attracting more consumers to LCD-TVs, LED-backlit LCD-TVs are already here and represent one clear way that viewers can see a difference in picture quality and performance.
It isn’t a secret then that LED-backlit LCD-TVs are gaining in momentum. Furthermore, the environmental “green” aspect of LEDs—consuming 35 percent to 40 percent less power than traditional Cold Cathode Fluorescent Lamps (CCFL)-based sets—has also become a source of interest among consumers.
With these emerging markets within the LCD-TV segment poised for strong growth during the next five years, the overall LCD-TV segment is ripe with opportunity.
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