DisplaySearch: Plasma shipments continue to slide

As we've previously noted, sales of plasma TVs have waned as LCDs have become a more popular choice, so that nine out of every 10 TVs now sold in the U.S. are LCD models. Given that the best plasma TVs (available to subscribers) are still great choices, we've been wondering: Can plasma sales rebound?

Based on the latest numbers from Austin-based market research firm DisplaySearch, the answer is apparently no. Blaming the poor economic climate and the exit by several brands from the business, DisplaySearch reports that shipments of plasma panels—the glass panels used to make plasma TVs—fell 22 percent in the first quarter of the year compared to the same time last year.

While a lot of the decline was due to the 32-inch screen size—offered by brands such as Vizio and Insignia—being discontinued, DisplaySearch says that even 42- and 50-inch panel shipments were down, as Pioneer exited the TV business altogether, and other brands, including Vizio and Hitachi, are now focused exclusively on LCD. That leaves just Panasonic, Samsung and LG Electronics as the major panel makers left in the plasma business.

"As bad as plasma unit shipments were in Q1'09 relative to a year ago, plasma panel revenues were even worse, declining 36 percent [year-to-year], as falling prices were needed to stem even steeper demand falloff," noted Paul Gagnon, DisplaySearch director of North America TV market research. He expects plasma manufacturers to try and implement more efficient manufacturing and production processes to help remain competitive with LCD sets.

DisplaySearch also noted that 1080p plasma shipments dropped slightly, as more manufacturers focused on lower-priced 720p models in the 42- and 50-inch screen sizes to entice cost-conscious customers. Also, one-third of all plasma shipments are now 50 inches or larger, a size where they compete more effectively with LCD sets.

Personally, I hope that plasma TVs remain a viable choice for some time to come. We're currently testing several new plasma TV models from the leading manufacturers, so stay tuned for the results.

And if you'd like more info about DisplaySearch's latest findings, check out its global TV forecast, or send an email to the company at contact@displaysearch.com.(Please note: DisplaySearch provides industry-specific information to professionals in the display manufacturing business, not consumers. Still, the links I've provided to DisplaySearch's public press releases offer some more details of their latest industry research.) —James K. Willcox