DisplaySearch reported that flat panel (LCD and plasma) TV penetration gained ground in each of the eight regions covered. Flat panel TV shipments accounted for more than 75% of total TV shipments in the top three regions: Japan, Western Europe and North America.

Worldwide, flat panel TV shipments rose from 37% in Q1'07 to 43% in Q2'07 as prices vs. conventional CRT sets continued to narrow. Sequential growth was up more than 20% Q/Q in North America, Middle East and Africa, Asia Pacific, and Latin America. On a revenue basis, penetration is now above 50% in all regions, except for Latin America, with the worldwide flat panel TV revenue share rising from 74% to 79%.

Global TV shipments were up 1% Y/Y while falling 6% Q/Q on seasonal weakness to 43 million units. Despite the Y/Y unit growth, global TV revenues were down 4% Y/Y and 3% Q/Q to $23 billion with ASPs down 5% Y/Y while rising 3% Q/Q to $528 -- representing the first quarter that revenues and ASPs were down on a Y/Y basis in 2.5 years.

DisplaySearch Founder and President Ross Young noted, "The Y/Y decline in TV revenues and ASPs in Q2'07 can be attributed to rapid flat panel and MD-RPTV price erosion and unit weakness in regions where flat panel penetration is high such as Europe and Japan. In addition, Q2'07 is one year after strong sell-in from the 2006 World Cup which emphasized larger sizes while Q2'07 was marked by weakness at larger sizes due to more traditional buying patterns. For example, the 50"+ category declined 14% Q/Q in Q2'07 and 52" LCD TVs were flat Q/Q. Nonetheless, as flat panel TVs begin to saturate the TV market and prices continue to fall at a healthy rate, Y/Y revenue growth will be more difficult to achieve."