Among some of the hardest hit technology firms in the global economic downturn are LCD makers. As demand for products like TVs, notebooks, and other products using LCDs dropped, companies like LG, the world's second largest LCD maker, have been on rough times.
Those tough times may soon be over according to LG chief executive Kwon Young-soo. The executive told attendees at a press conference that the market had hit bottom and prices were expected to begin to rise again. Kwon said, "The good news is that we've reached a bottom. TV panel prices will likely stop the downward trend and recover."
Analysts expect LCD makers to continue losing money through the first half of 2009 as the demand for electronics continues to decline. Kwon's firm LG reported its worst quarterly results ever last week. The main source of the massive loss the firm posted was due to the $400 million fine that was imposed on the company in the U.S. LCD price fixing scandal.
LG also announced last week that it would refocus on high-end mobile displays. The company will invest 577 billion won (about $427 million USD) to build a new production line to produce the premium screens for mobile devices.
The new line will build displays using LTPS (low temperature polysilicon) technology that will allow the screens to produce better images and allow LG to get into the booming smartphone market. With the investment into mobile phone LCD making, LG will be competing head-to-head with Sharp Corp and Samsung Mobile Display.
quote: My rear end.
quote: My understanding is that Greenspan et al didn't follow the monetarist model (a la Volker*) well enough, by directly setting rates instead of setting a moderate-growth money supply target. In short, he dropped his shorts for Clinton and then bent over for Bush.
quote: Keynesians are concerned with aggregate demand generation when private demand is insufficient to avoid severe recession and depression. This is especially needed when demand will not recover in the face of consumer over-pessimism combined with business downsizing: "if tomorrow will be worse, spend less" is the spiral-down logic, and Keynesian demand generation via public investment makes a lot of sense in that context (inflationary otherwise).
quote: Apart from the issues of excessive debt and leveraging was that so much of the money was spent on non productive assets, particularly housing. Debt is not bad as long as it used to expand production and capacity.
quote: Well if consider your normal house. It does nothing, it does nothing to add to the capacity of the economy.
quote: The best model prior to 1913? You might want to change that view point. The USA had financial crises in 1873, 1884 ,1890, 1893 and 1907. 1873, 1893 and 1907 were all quite bad.
quote: In short, he dropped his shorts for Clinton and then bent over for Bush.
quote: My rear end. Ever since the price fixing scandal I haven't seen lcd television prices change. It's been long enough to trickle down to the consumer... Why haven't we seen this reflected in our prices? The complaint was that they sell for close to what they sold for years ago and that still rings true.