Last week, our friends at Pacific Media Associates reported rear-projection TV (RPTV) sales and revenues for October. Unit sales were down 2.7% from September, but revenues were up 3%. Why? ASP was up 5.5% on the month because sales were migrating to 1080p and to larger screen sizes. As a percentage of sales, 1080p models accounted for 13% in August, 24% in September, and 32% in October!

Ken Werner
Senior Analyst and Editor
of HDTV Retailer

Steve Sechrist
Senior Analyst and Editor
of Projection Monthly &
Microdisplay Report

We anticipated this transition. RPTV is the only way to get large-screen (50-inches-plus), Full HD at a reasonable price, while the prices of direct-view flat-panel TVs in the 32- to 42-inch range are plummeting, spurring excellent sales. So the move up-market was inevitable for RPTV, but that move implies an ongoing reduction in unit sales. But how will RPTV makers respond to this pressure?

InFocus has left the RPTV business (Projection Monthly, p. 22, December 2005) and, in an as-yet unconfirmed Displaybank story (www.displaybank.com), it was reported today that LG Electronics would also bow out of the business in 2006, saying that the high inventory and marketing costs could not be justified for a segment that accounts for only 5% of the market. On the other hand, Samsung and Sony have increased their commitments to the segment, with Sony boasting the two top-selling RPTV models in the North American market, according to Pacific Media. If the LGE portion of this story is confirmed, it spells trouble for projection-chip-and-engine maker SpatiaLight, whose main customer is LGE.