Large LCD Inventories, Bad World Cup, Hurt Philips (July 2006)

This may or may not have implications for the U.S. market as the college and professional football seasons are just around the corner, but Philips (now LG Philips based in South Korea) was overly optimistic about LCD sales in the runup to the World Cup. (Source: Bloomberg News, accessed 23 July 2006). It's reasonable to believe consumers will buy a new display in time for a major sporting event like the World Cup (as I recall, my family bought our first color TV in December 1970 in time for the New Year's Day parades and bowl games, just like the sellers suggested we do).

The article went on to disclose that the company forecast third-quarter shipments to rise more than 25 percent from the second quarter with prices at the end of September expected to fall another 5 percent from the end of June. Screen prices fell 23 percent in the second quarter from a year earlier, the company said.

This article seems to suggest that LG Philips will cut back on manufacturing. If they do and the industry follows suit, this would further suggest a slowing in the drop of LCD prices. Given that LCDs are competing with other forms of HD displays (e.g., plasma and rear orojection), it's hard to imagine prices doing anything other than continue downward.

There is a blog devoted to displays called displayblog.wordpress.com/ that I am adding to my links.

You may use this content (better still, argue with me!), but please cite my ideas as © 2006, Dr. Bruce Klopfenstein. Find any typos! Don't smite me, let me know!


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