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Print 15 comment(s) - last by UppityMatt.. on Jan 23 at 11:11 AM

LCD panel makers increase spending to meet consumer demand for LCD panels

LCD panel makers are expecting a banner year in 2008 thanks to the fast-approaching switch from analog broadcasts to digital broadcasts due in February, 2009. LCD makers are expecting a record year with shortages in the LCD market keeping demand for panels up.

The LCD panel market looks so good for 2008 that the Wall Street Journal reports many of the LCD industries biggest panel makers are greatly increasing their capital spending in 2008 to increase production capacity for LCD panels.

Samsung announced it intends to increase its capital spending to  3.7 trillion won or $3.9 billion USD. This figure represents double the capital spending from Samsung last year. Sharp also plans to increase its capital spending with 197 billion yen, or about $1.85 billion USD earmarked.

The market projections from several research companies are predicting strong growth in the LCD market in 2008. iSuppli is forecasting revenue of $82.1 billion USD this year, a 14% increase, for the LCD industry.

The downside to the increased capital spending in 2008 will be felt in 2009 when the increased production capacity makes for an oversupply in the market. This excess of LCD panels is expected to hurt the LCD makers in 2009 by driving prices down. Market-research firm WitsView general manager Henry Wang told the Wall Street Journal, “Currently, I'm expecting an oversupply in 2009, but it could come earlier.” Some analysts are saying the oversupply could come as early as Q4 2008.

LCD panel makers have been scrambling over the last year to build alliances with competitors to allow for lower production costs and to meet consumer demand for LCD panels. 

DailyTech reported in December of 2007 that Toshiba and Sharp had formed an alliance for LCD panels. Later the same month DailyTech reported on details for multi-billion dollar talks between Hitachi, Matsushita and Canon for LCD panels.



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Panic in 08, reality in 09
By djc208 on 1/23/2008 7:12:52 AM , Rating: 5
So basically the LCD manufacturers are counting on lots of people who don't know better to go buy new LCD TVs thinking that next year their old analog TV will go dark, when in reality most people who can afford an LCD HDTV are using cable or satalite and won't be affected. Everyone else will be just use the converter box coupons and continue with their old analog TV.
Then in 09 reality will set in and we'll be back to business as usual.

Either that or the LCD manufacturers don't understand the digital TV switch either.

I guess it could be a great excuse if you were trying to talk a wife or girlfriend into a new TV though (assuming they didn't know better too).




RE: Panic in 08, reality in 09
By UppityMatt on 1/23/2008 11:11:07 AM , Rating: 2
Its what my dad just did, although i think he fell into the category that he thought his old TV wouldn't work anymore...even though they have satellite. But i like the bigger TV when i go to visit them so i didn't mention it.


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