4K2K TV Panel Penetration to Hit 7% in Q2: WitsView

Shipments of 4K2K, or UHD (Ultra High Definition), TV panels have been better than expected, due mainly to vendors' promotions during the May 1st extended vacation in China and the HD broadcasting of the 2014 FIFA World Cup. Some 4.4 million 4K2K TV panels are believed to have been delivered in Q2, for a penetration of 7% in the overall TV-panel market, according to WitsView Technology Corp., an LCD market research firm.

J.A. Chen, senior research manager at WitsView, says that while the overall TV sales in China during its May 1st vacation dropped 10% year-on-year (YoY), 4K2K models reached 11.3% penetration, higher than originally expected. The 2014 FIFA World Cup also has driven demand for 4K2K panels, Chen says, hence leading to a global shipment of 1.46 million  panels, up 2% month-on-month (MoM).

To continue enhancing the popularity of 4K2K models, Chen says, TV vendors have introduced RGBW 4K2K (added white pixels) panels to make such products more attractive. With popularity of 3D TVs proving less than expected, TV vendors are promoting sub-50-inch 2D 4K2K models, or 65-inch-plus 4K2K TVs with lower frame rate (60Hz), to  meet demand from customers. Such price-differentiating strategies have effectively maintained growth of 4k2K TV shipments.

Thanks to greater variety in TV screen sizes, WitsView says, the price gap between 4K2K and Full High-Definition (FHD) TVs is narrowing, leading to expanding 4K2K shipments.

In addition to the top-2 major Taiwanese thin film transistor-liquid crystal display (TFT-LCD) suppliers, Innolux Display Corp. and AU Optronics Corp. (AUO), WitsView says, Samsung and LGD of South Korea are also aggressively developing and producing 4K2K TV panels. Such competition has reduced 4K2K panel prices and expanded the new market segment.

In April, 4K2K panel penetration reached 6.8%, better than the original forecast of 6%, and Innolux predicts such penetration in 2014 to rise to 10%. n

Global 4K2K TV Shipments (Jan.-June, 2014)
Month	January	February	March	April	May	June (f)
Shipments	180,000	340,000	830,000	1.39 million	1.46 million	1.55 million
Source: WitsView, makers' data