Backlight unit(BLU)makers are forecast to see accelerated output value growth in 2013 due to an expected climb in the global LED TV penetration rate.In 2012,large-size LED TVs grew in popularity across the globe,namely in North America,and TV vendors have plans to improve their large-size direct-type LED units in 2013 as demand for high-end TVs is expected to recover even more during the year.
By the end of 2012,Samsung Electronics had started selling 60-inch TVs at nearly half the price it did back in the first half of the year,while Vizio dropped the price of some of its 60-inch units to as low as US$688 and held multiple promotions to generate sales.Market observers expect these trends to last throughout 2013 and consumers can expect to see 50-and 55-inch TVs drop in price as well to compete with the 60-inch units.
The price drops are expected to be the driving force for TV vendors in persuading consumers to purchase new large-size units.This coupled with TV vendors'plans to continue bumping up value-added features and resolutions in their next-generation TVs means there will be more demand for BLUs,which is expected to increase profits for BLU makers.
BLU makers can expect increased orders for BLUs used in large-size direct-type units and as well as for use in Ultra HD(3840 by 2160)TVs.Ultra HDs are expected to be a major focus for TV vendors in 2013 despite the lack of Ultra HD TV content.These units will typically use 20-50%more BLU components than a same size Full HD LED TV unit.
Additionally,China will also be an important market for BLU makers to expand shipments due to many local-based vendors largely reducing their promotion of CCFL units,and instead trying to push low-end LED units.Energy-saving subsidies provided by the China government that include funding for LED TV purchases will last through the middle of 2013 and will help drive LED TV purchases in China during the period,as they did in 2012.
However,industry sources have pointed out that supply chain players have reached their limits in terms of how much they are able to drop the pricing of their goods.LED TV makers have mostly looked to BLU makers to reduce costs in order to lower TV prices to the extent they have.But this trend is starting to put a strain on the BLU supply chain and TV vendors will most likely need to resort to other resources to cut costs in the future.
Forming supply chain alliances will be a major boost in this regard.Foxconn Electronics'move to invest and cooperate with Sharp to provide more complete solutions proved effective when they released their 60-inch LCD TV in late 2012.The companies have looked to telecom providers to make up the reduced profits from direct sales of the TV,and it is likely other TV vendors will adopt similar measures in the future.
Nevertheless,BLU makers will have multiple routes for growth in the TV segment and will also have the rapidly growing demand for BLUs from the tablet sector to fall back on.
LED TV growth in 2013 expected to bump up BLU orders
