DisplaySearch reports TV video processor IC shipments up 22% Y/Y in Q3’07
(Business News, 29 Nov 2007 )
According to market research firm DisplaySearch, the Q3'07, video processor, MPEG video processor and de-interlace/scalar unit shipments were up 28 percent Q/Q and 22 percent Y/Y, reflecting strong fundamental growth as consumers make the shift to digital TVs from analog TVs. Overall video processor revenues increased by 16 percent Q/Q due to increased unit shipments for back-to-school and to build inventory in anticipation of the traditionally strong holiday quarter. Revenues were pressured by ASP margin declines that were neutralized by increasing volume shipments and smaller ASP declines in quarterly TV OEM pricing renegotiations with their IC suppliers.
According to Vish Nayak, Vice President of Display Electronics at DisplaySearch, revenue for TV IC manufacturers was exceptionally strong in the quarter driven by a need for TV retailers to build sufficient inventory to meet anticipated consumer demand in 2H’07 driven by consumers acceptance and upgrade to DTVs and a need driven transition to buy into newer display technologies incorporated into flat panel DTVs like LCD and Plasma TVs. "Further revenue and unit gains would be difficult in Q4'07, given the strong results exhibited in Q3’07. The build up of inventory shipped by IC suppliers in Q3’07 to TV OEMs will be depleted by actual sales of DTVs during the all important shopping period between Black Friday and Christmas. The overall outlook for 2H’07 DTV IC shipments is very positive with an aggressive shift continuing toward flat panel TV purchases, as consumers continue looking forward to replacing their old legacy analog TVs with DTVs during the upcoming peak holiday and football seasons," Nayak added.
Total revenue in Q3'07 increased to $346 million with merchant IC providers included in 88.3 percent of all digital TVs shipped during the quarter. This resulted in revenue growth of 16 percent Q/Q. Continued unit shipment growth is expected through 2007 and subsequent years in the IC market, as DTVs make further in-roads in the worldwide TV market and as TV broadcasters transition to digital-only terrestrial TV broadcast transmissions on a worldwide basis.
