Sales of 60-inch and larger TVs increased more than 40 percent year-over-year in the third quarter of 2018, according to analyst firm IHS Markit.
Acceleration in big-screen TV sales
Although overall TV shipments remained flat in the third quarter of 2018 compared to the same quarter in 2017, the average TV screen size increased significantly. Shipments of 60-inch and larger TVs grew more than 40 percent year-over-year as prices for 65-inch and 75-inch continue to drop.
- “Each year during the holiday shopping season, brands and retailers try to push ever larger screen sizes to keep revenues growing and encourage adoption of value-added features like 4K and smart TV,” said Paul Gagnon, research and analysis executive director, IHS Markit. “This year, there’s higher interest in 65-inch 4K TVs for many of the key promotional deals, leading to less focus on smaller screen sizes under 50 inches.”
Global shipments of TVs in the 50-59-inch segment are also increasing whereas sales of TVs below 49 inches in diagonal have started to decrease.
IHS Markit added that the share of 4K TV shipments in the third quarter of 2018 reached a record high of nearly 44 percent of units and 71 percent of revenue. The analyst company also noted that prices of 65-inch TVs are falling.
- “Prices of 65-inch 4K LCD TVs fell to an average of $1,110 in North America during the third quarter, from $1,256 in the previous quarter. In China, the average price of 65-inch TVs was even lower – just $928, after already falling below $1,000 in the second quarter. Xiaomi and other brands have aggressively pushed prices lower as competition intensifies in China. In other regions, prices were considerably higher for 65-inch 4K TVs, due to less intense retail competition and a smaller addressable market,” IHS Markit said.
While IHS Markit did not comment on its outlook for the TV market, many parties expect the trend to continue in the coming years as TV manufactures continue to push larger TVs, prices fall, and 8K TVs start to emerge.