
March 14, 2007
During a recent press event in Hong Kong, Rudy Provoost, CEO of Philips Consumer Electronics, said the company has decided to phase out of the plasma HDTV market and will focus on LCD HDTVs in the future.
Provoost added that, except for North America and Australia, Philips will drop plasma HDTV sales, and that it plans to stop plasma HDTV sales in China later this year.
In 2006, Philips ranked the fourth in the global plasma HDTV market for the full year with a 10% revenue share, trailing Panasonic, LGE and Samsung, according to DisplaySearch. Even better, Philips ranked the second place in LCD HDTV market in 2006, with a revenue share of 13.0%, with Samsung being the top player, the research firm added.
Also according DisplaySearch, Philips plans to ship nine million LCD TVs in 2007, up from more than five million in 2006. Philips Taiwan said the company is unavailable to provide its plasma HDTV shipment target for 2007.
Unlike its LCD HDTV business, for which Philips has 32.9% of stake of LG.Philips LCD, a leading LCD TV panel maker, Philips does not have any plasma plants to support its own-brand plasma HDTV business.
Sources said that Philips’ decision is probably related to the strong growth of the LCD TV market. According to research firm iSuppli, worldwide LCD and plasma markets will grow to 63 million and 11 million units, respectively, in 2007, up from 40 million and nine million units, respectively, in 2006. To stay competitive, plasma HDTV makers now are eyeing the 50+” segment, which has become the new divide between LCD and plasma technologies, as opposed to the previous divide at the 40″ level.
Last year, Sony stated it too will stop producing plasmas after having slowed its plasma shipments in recent years. Sony’s output of plasma HDTVs totaled only 100,000 units in fiscal year 2005 (the year ended March 31, 2006), down 67% from 300,000 units in the previous year, according to Sony. Nevertheless, a January report quoted market rumors in saying Sony is considering returning to the plasma HDTV market and is in talks with Fujitsu Hitachi Plasma Display.


