According to a new report from TrendForce, TV broadcasts worldwide hit a "historic high" in the third quarter of this year. During the quarter, 62.05 million units were delivered, an increase of 12.9 percent compared to the same period last year and an increase of 38.8 percent compared to the previous quarter. Both Samsung and LG, the top two TV makers, announced today that they expect earnings this quarter to increase year over year.
TrendForce cited various factors for the historic high. In North America, TV demand increased by 20 percent as people spent more time at home due to the pandemic. The quarterly increase is also responsible for TV shows that have been delayed from the first half of the year, according to the supply chain analytics firm.
According to TrendForce's report, the top five TV manufacturers all increased profits in the last quarter.
Although all five TV manufacturers saw their shipments grow, TCL came out on top with a 52.7 percent year-over-year increase. Samsung's shipments rose 36.4 percent year over year and 67.1 percent year over year. LG saw a smaller 6.7 percent increase compared to the third quarter of 2019, but a massive 81.7 percent increase since the last quarter.
Samsung and LG both appear to have benefited from the surge in TV demand, based on the preliminary forecasts each announced today. However, CNBC reports that Samsung's increase in profits is believed to be primarily due to sales and earnings from smartphones from the storage division. According to Yonhap, LG had strong performances in both the TV and home appliance businesses. However, the more modest increase in profits of 4.3 percent was supported by cost reductions in the mobile division.
Despite the surge in shipments, this isn't all good news for the TV industry. TrendForce predicts that TV shows will likely decline slightly overall in 2020 compared to 2019. It is also advised that panel prices are likely to continue to rise even if the average price for TVs in North America drops and lowers profit margins.