- Following an in-pour of Taiwanese IT hardware and home appliance vendors in 2003, Taiwanese LCD TV volume and value saw rapid growth in the first quarter of 2004. Gains were pushed along by the ramp up of new-generation panel capacity, mass production of 20" and larger LCD TVs, and an influx of orders from international vendors. 380,000 units were shipped in the first quarter of 2004, growing 34.2% sequentially, while the shipment value reached US$366 million, a 60% sequential increase. ASP (Average Selling Price) went up to US$989, 37.9% higher than the fourth quarter of 2003.
In the second quarter of 2004, however, the industry was faced with only slight growth in shipment volume and drops both in shipment value and ASP. Demand was growing slow, as the second quarter encountered the weaker sales season. The European Cup failed to stimulate LCD TV demand in European markets, and inventories were overrun in the North American channels at the end of 2003, curbing growth in LCD TV shipments.
The few Taiwanese LCD TV manufacturers who saw growth in shipment volume were those with orders for international vendors' new models. With limited demand, other manufacturers bore declining shipment volume, the amount of the fall varying according to business types and major shipment destinations.
The Taiwanese LCD TV industry's shipment volume thus totaled approximately 410,000 units in the second quarter of 2004, only 9.7% up sequentially. Shipment value reached US$304 million, a 20% sequential drop. ASP went down 33.6% sequentially to US$740.
The decline in ASP and shipment value in the second quarter of 2004 was mainly because the increase in shipment volume consisted mostly of less-expensive LCD TVs under 15", while the volume of models 20" and larger fell. Also, to stimulate demand, manufacturers cut prices on LCD TVs 20" and larger.
Looking toward the second half of 2004, as there are currently inventory pile-ups in the channels, the Olympics Games should not help much in the third quarter. However, with the overstock digested in the third quarter and lower panel prices, the fourth quarter's strong sales season looks bright. Taiwanese shipment volume in the fourth quarter of 2004 is thus still anticipated to reach 8.3 million units. Although increased orders from existing clients will be helpful for Taiwanese LCD TV makers, the key to ongoing growth in the second half of 2004 will be to strive for new orders from international vendors and large-scale channel players. The second half of 2004 is expected to reach close to one million units in LCD TV shipment, bringing total 2004 shipments to 1.8 million units.