Market Watch

CRT-TV’s Last Bastion Falling

2010 to be the last year Indian consumers spend more on CRT-TVs than LCD-TVs

July 22, 2010

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With Liquid Crystal Display-Television (LCD-TV) sales in India gaining momentum quickly, 2010 will be the last year that Cathode Ray Tubes (CRTs) can lay claim as the leading television display type in the country on a revenue basis, according to iSuppli Corp.

India represents one of the last strongholds for CRT-TVs, with consumers in other major economies having transitioned the majority or nearly all of their television purchasing to LCD display technology in recent years. However, the allure and declining prices of LCD-TVs, along with increased consumer awareness, have spurred sales of the flat-panel televisions—and eroding the dominance of CRT TVs.

As a result, LCD-TV revenue in India will exceed that of CRT-TV starting in 2011. LCD-TV shipments will catch up the year after, exceeding those of CRT TVs starting in 2012.

Overall, CRT-TV revenue in 2011 will decline to $1.6 billion, down 32.3 percent $2.3 billion in 2010. In contrast, LCD-TV revenue will rise to $3.5 billion in 2011, up a stunning 94.3 percent from $1.8 billion in 2010.

 Meanwhile, CRT-TV unit shipments will decline to 9.4 million in 2012, down from 11.1 million in 2011 and from

15.7 million in 2010. At the same time, LCD TV shipments will increase to 9.7 million units in 2012, up from 6.6 million in 2011 and from 3.3 million in 2010.

No Local Production
While demand for LCD-TVs in India will increase rapidly over the next five years, LCD-TV growth still will not be enough to compel TV manufacturers to open up local production plants for LCD panels or modules in the country. Samsung, LG and Dixon are increasing their presence in the country with final assembly plants, but unless demand in India increases significantly, localized LCD-TV production does not appear to be feasible, especially as Korean and Chinese LCD-TV OEMs prefer to manufacture their products in their own plants.

Assembly plants, on the other hand, are catching up in the country, with key players either already possessing facilities or announcing plans to invest in final-assembly plants in India. The Indian government is also involved by reducing customs duties on important LCD panels.

Retail Expansion
While localized plants may not be a reality in the near future, the increasing demand of LCD-TVs is putting increased pressure on retailers in India to launch exclusive durable-only retail outlets. Meanwhile, several players in the market—such as LG Display, Samsung Electronics Co. Ltd., Whirlpool Corp .and India-based Videocon—are busy forming relationships with retailers and other large-format retail chains in order to garner the appropriate sales channels to accommodate incoming demand for LCD-TVs.

Read More, The BRIC TV Market: India, At the Helm of An Accelerated Metamorphosis >

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