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“LCD TV Matters” Volume 2, Issue 2

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“LCD TV Matters” Volume 2, Issue 2 “LCD TV Matters” Volume 2, Issue 2 "A Great TV in Every Room" LCD TV Association LCD TV Matters Pre-CES 2009 Contents Chairman’s Corner: A crazy few months... by Bruce Berkoff 3 LCD-TV News compiled by Veritas et Visus 6 Sharp unveils AQUOS Experience for holiday season 6 Samsung introduces a 2000-nit 70-inch LCD panel 6 Panasonic Viera TH-PZR900 HDTV sports terabyte drive 6 LG Display shows off 480Hz LCD TV panel 7 Viewsonic launches 24-inch 1080p LCD TV 7 Samsung introduces 52-inch “Touch of Color” LCD TV 7 HDMI adopted by 700+ manufacturers as new CE and PC products hit market 7 Sharp releases world’s first LCD TV with built-in Blu-ray Disc recorder 8 Sony unveils world's thinnest LCD TV 8 LifeSize introduces the next-generation telepresence and high definition video communications 8 Sharp adds enhanced inputs and network connectivity to HD LCD line-up 9 Panasonic launches PZ850 Web-enabled TVs – features H.264 and four HDMI ports 9 Schaub Lorenz introduces $130,000 40-inch LCD TV 10 Philips Research reveals ultra-thin backlight technology for TVs 10 LG and Samsung join forces to develop mobile digital TV standard via ATSC 10 eyevis introduces 56-inch LCD TV at 3840x2160 pixels 11 AUO and Qisda form JV to manufacture LCD TVs 11 ATSC approves AVC within DTV transmissions 11 NEC introduces 82-inch professional-grade LCD for digital signage 11 Fairchild Semiconductor’s LCD TV design achieves 90% efficiency 12 ZeeVee now shipping ZvBox for PC content streaming 12 GAO reports DTV transition making progress 12 Broadcom to acquire digital TV business from AMD 12 Best Buy survey says confusion remains on digital TV switch 12 VIZIO supports CUT FATT 13 LCCR criticizes DTV transition process 13 Blockbuster says DVD to Blu-ray shift will be slower than VHS to DVD 14 ABI Research reports lukewarm reception for Blu-player purchases 14 EMA predicts Blu-ray to outsell DVD in 2012 14 Quixel Research reports 25% LCD TV increase in Q2’08 15 Display Insights predicts HDTV silicon sub-component revenues to rise to $6.7 billion by 2011 15 iSuppli reports that HDTV shipments surpass standard TVs 16 Wide viewing angle performance remains crucial in LCD TV says DisplaySearch 16 Plus much more from: Leichtman Research, AUO, WitsView, DigiTimes, Displaybank, IMS Research, LG Display, Digital UK, Toshiba, Panasonic, Belkin, Pulse~LINK, WHDI, CEA, US Justice Dept, NXP, Mirics, Qpixel, SiTune, Gefen, Analog Devices, Microtune, NECEL, Cidana/Siano, Tensilica, Mobile DTV Alliance, Silicon Image, Chrontel, Lighthouse, Quantum/Siano, Micronas/ Oregan Networks, NCTU, Kaleidescape, Singapore Airlines, Malata/Xceive, Ambric, Harmonic, China Digital TV/ ViXS, DIVA Consortium, NBC, Pioneer, InPhase, and Shanghai United Optical Disc What a difference a year makes by Paul Gagnon 32 Retail price survey of LCD TVs in Q3’08 by Tom Lo 34 Interview with Jeff Allen from Rallypoint 36 2008 HDTV Buying Guide released 40 Retrevo’s 2008 Year-End Consumer Electronics Report by Vipin Jain 41 Preparing for the DTV transition… by Alfred Poor 47 Display Industry Calendar of Events 50 2 LCD TV Association LCD TV Matters Pre-CES 2009 Chairman’s Corner: A crazy few months… by Bruce Berkoff What a crazy few months it has been. From a worse than normal steep decline in prices during the start of a regular cyclical downturn in the $100+ billion TFT LCD panel component industry as part of relatively normal supply/demand behavior starting over the summer (remember, we have had regular ~2-2.5 year cycles for about two decades now) to the once in a lifetime economic downturn we now face globally, the mood has shifted rapidly to one of uncertainty in almost all businesses around the world, not just the usually difficult consumer electronics industry. You might note that I wrote in this newsletter around 11 months ago about our USA recession that the Fed had not yet recognized, and indeed now they claim it started in Q4’07. I have always maintained that the LCD industry is one where you can usually tell how many units will be shipped (the same number that gets built) but not know at what price they will be shipped at. Well, in Q4’08 it became hard to gauge what would even get built given the uncertainty and fear that surrounded parts of the supply chain and all of the credit markets, which led to utilization rates in factories falling to their lowest levels ever admitted (but that public admission across the spectrum was a healthy sign of industrial maturity and rational behavior where that had been lacking). So we are indeed in a unique phase in the growth of the LCD TV market, as we enter a period of strong unit demand in general, as the digital broadcast transition kicks in across the USA starting in Feb '09 and over a period of time rolls out globally across other markets as well. Units for second and third LCDs TVs in developed nations will grow and the first HDTV in a house for developing nations will surprise people for many years to come, but at what average price? (I have always said people will buy a TV before putting in indoor plumbing, as it is cheaper and easier to do, and that will continue to prove true!) Figure 1: The photo on the left is of Mt. St. Helens after it blew up – much like our current display market when you combine the normal cyclical downturn from this summer that we expect every couple years with the once in a lifetime economic downturn the USA ran into in the fall without fully noticing... The photo on the right is a 65-inch Olevia LCD TV, a company that had its own downturn, but on the screen is the movie title "The Chubb Chubbs Save XMAS” as we hope the USA consumer would do (and I believe they will again someday soon)... But this year we saw the supply chain and shipping markets collapse in early Q4 as the world’s economic banking trouble boiled over onto Main Street (and shippers used to “letters of credit” had to often change their way of doing business or working capital requirements). The vast array of containers sitting eerily still on shipping docks in Chinese ports instead of hustling their way to USA’s west coast in time for Xmas shopping reminded me of a spent volcano, like the aftermath of Mount St. Helen’s (see Figure 1a) where an unbelievable amount of energy was “spent” and now the remains sit in awesome silence, awaiting the natural “rebirth” to come. 3 LCD TV Association LCD TV Matters Pre-CES 2009 I still believe the USA consumer will spend more than they “should” (being less rational than even the LCD industry) but whether they will “save Xmas” (as do the “Chubb Chubbs” in the wonderful animated short film pictured in the 65-inch Olevia LCD TV in Figure 1b) will depend on your point of view. I personally think that unit volume will be OK for quite some time in the LCD TV space, on a relative basis, but it will always disappoint someone - especially in these days where negative overall revenue growth is possible due to such steep price declines (in general I am amazed by the gloomy analysts who see dire straits in any economic growth numbers that are even very small positive single digits, let alone small negative ones, forgetting of course that they represent millions of people still spending billions of dollars on things they want and need and voting with their wallets that our economy will indeed go on!). Yet I digress, too far from the essential points: 1) people will still spend money on LCD TVs of all types, and in all countries, and to a unit level that will grow to surprise most analysts over the next few years and 2) the US consumer will also do the same in 2009, beyond the big “digital transition” in America (which will not go quite as smoothly as the FCC would like nor of course as badly as the pundits would predict). “Entertainment” spending of all types will remain one of the most important industries in our economy. Some past worries have already started to fade, as will “will OLED TVs replace LCDs anytime soon”?, with resounding “no’s” Figure 2: This is a reverse glass painting from from the likes of Samsung and others who support the China about 100 years old – the sort of thing technology for small screen phone formats but admit (sorry that wealthy families would commission, not Barry!) that larger screens need a supply chain and technology unlike what Chinese manufacturers felt before that does not quite exist and may not be economically feasible about getting into LCD-type thin flat glass anytime soon (if ever!). As LED “edge lights” advance in ability displays. and reach better cost points and begin to replace normal BLUs in LCD TVs Figure 3: This is as they have in notebooks, an oil painting of more of the few Angkor Wat from weaknesses left in LCDs Cambodia, an old- will go away, and thinner fashioned pretty and sexier models will oil painting of a come out, with higher lost kingdom's “WAFs” and lower shipping glory days in current ancient and logistics costs (if they ruins – not to be would just use some cool confused with the stand ideas to make the current LCD boxes smaller!). market, which will shine again (well, LEDs will also lead to at least for better energy conservation some)..
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