According to MIC (Market Intelligence Center, Taiwan), an ICT industry research institute based in Taipei, the Taiwanese LCD (Liquid Crystal Display) TV industry's shipment volume reported slight growth in the second quarter of 2008, as it was affected by the economic slump caused by the ongoing US subprime mortgage crisis as well inflation and high oil prices. Shipment volume reached 4.57 million units, representing a sequential growth rate of 8.3% and year-on-year growth rate of 41.3%. Due to drops in TV panel prices, popularity of small-sized TVs, and branded vendors' price reductions, ASP (Average Selling Price) of Taiwanese FOB full-set TVs fell 5.1% sequentially to US$408.

Taiwanese LCD TV makers' shipment volume for the North American market scored a slight sequential growth rate of 7.7% in the second quarter, reaching 2.87 million units. The North American market saw replacement demand in anticipation of the inauguration of digital TV broadcasting in the United States starting in 2009. Meanwhile, Samsung and Sony launched aggressive price reductions in May to increase market share. Other first-tier brand-name vendors' shipment was thus squeezed, and Taiwanese LCD TV makers' North American shipment volume was also indirectly affected.

Furthermore, second-tier brand-name vendors' shipment performance was considerably undermined by weak consumer demand in North America. Their profit margins were also compromised by the acute price war. Various vendors -- including Polaroid whose production is wholly outsourced to Taiwanese makers, Olevia whose shipment was affected by the Syntax-Brillian crisis, and Teco and Sampo which operate own-brand businesses in North America -- have adjusted their market strategies and carefully reviewed OEM (Original Equipment Manufacturing) orders.

The European market reported substantial LCD TV sales growth in May and June thanks to the UEFA Euro 2008 football tournament. Taiwanese LCD TV makers therefore enjoyed good second-quarter shipment performances in Europe. Although still facing unemployment problems, Europe has gradually recovered from the first-quarter economic slump caused by the US subprime mortgage crisis. Consumer demand for LCD TVs was further boosted by Samsung and Sony's price reductions. Meanwhile, Philips and LG, which have been developing the Eastern European market, aggressively pushed small-sized models measuring 32 inches and less and have reaped considerable results.

Taiwanese LCD TV makers TPV, Qisda and Jean, whose customer portfolios consist mainly of second- and third-tier LCD TV brands and whose contract production focuses on 32-inch and smaller models, scored better shipment performance in the second quarter compared with the first, also thanks to the market opportunities brought about by the UEFA Euro 2008 football tournament. Taiwanese LCD TV shipment volume for Europe arrived at 820,000 units in the second quarter, returning to the level of the fourth quarter of 2007. Should brand-name vendors and channel players successfully clear their inventories, it is expected that the figure will see further growth in the second half of the year.

Meanwhile, although set back by the Sichuan earthquake in May, the second-quarter Taiwanese LCD TV shipment for China still grew 2.2% sequentially thanks to the Beijing Olympic Games and reached 566,000 units.

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