Taiwanese IT and home electronics makers began to aggressively move into the production and sales of PDP (Plasma Display Panel) TVs in the second quarter of 2004. By the second half of 2004, the PDP price drop as well as busy sales prompted by the Olympics and holiday season generated an increase in orders, causing Taiwanese PDP TV shipment volume to grow significantly. Thus, in the second half of 2004, shipments posted 129% growth from the first half of the year, reaching more than 146,000 units.

Due to PDP TV panel oversupply, brand-name Korean panel makers took the lead in slightly marking down panel prices. This brought the price of PDP TVs to slip 6% between the first and second halves of 2004. ASP (Average Selling Price) in the second half of 2004 consequently fell to around US$1,700. However, shipment value, under the influence peak sales, more than doubled what was registered in the first half of 2004, to US$249 million.

In terms of screen sizes, 42" models remained the mainstream specification in the second half of 2004, accounting for approximately 80% of total Taiwanese PDP TV shipments, followed by 46" and 50" models. Contracts released from Japanese and Korean vendors plus orders from European and US channel players bumped up the shipment share of OEM/ODM (Original Equipment Manufacturing/ Original Design Manufacturing) production to over 80% in the second half of 2004. OEM/ODM production was thus the main growth driver of the Taiwanese PDP TV industry in the second half of the year; Taiwanese branded shipments held around 15% of the total volume.

Looking towards 2005, growth momentum in the industry is likely to weaken as market demand wanes in the first half of the year. However, a severer case in PDP TV panel oversupply could induce a further drop in panel prices and stimulate demand for PDP TVs. In addition, with cost considerations in mind, Japanese vendors as well as second-tier home electronics makers in Europe and the US are expected to release more orders. If Taiwanese OEM/ODM makers are successful in securing new orders from international vendors and large regional channel players, the Taiwanese PDP TV industry will be eyeing at least 80% shipment growth in 2005.

Market Intelligence Center, based in Taipei, Taiwan, was founded in 1987. MIC is Taiwan's premier IT industry research and consulting firm providing intelligence, in-depth analysis, and strategic consulting services on global IT product and technology trends, focusing on markets and industries in Asia-Pacific. MIC is part of the Institute for Information Industry. https://mic.iii.org.tw/english