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Samsung Says LCD Prices Will Rebound in Q4
Mar 7, 2005
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Flat-screen maker Samsung Electronics Co. Ltd. said prices of liquid crystal displays (LCD) for computers and TVs won't rebound until the fourth quarter of this year. LCD prices have tumbled because demand for expensive flat-screen televisions has fallen short of the expectations of manufacturers, who are spending more than U.S. $40 billion to ramp up production over the next decade.

Samsung had predicted in January that LCD supply and demand would balance by the latter half of 2005 but that prices could recover as early as the second quarter.

"LCD prices won't rebound until the fourth quarter. They will definitely rise by Q4 as demand continues to pick up," Cho Yong-duk, a vice president of Samsung's LCD division, told Reuters and Dow Jones. "The prices are likely to stay stable in Q2 and Q3 after a fall in Q1," he added.

Samsung also said it has developed the world's largest 82-in LCD panel, topping a 65-in LCD TV unveiled by Japan's Sharp Corp.'s in October.

Screen makers are investing heavily to boost capacity in making televisions as thin as a picture frame. The upgrade from traditional cathode-ray boxes is the biggest change in TV technology since the switch from black-and-white, but the rush in new production has led to a sharp fall in display prices.

The world LCD TV market is growing fast. According to Display Search, LCD TVs of 28-in and larger already make up 31 percent of the market. They are expected to account for 45 percent this year and 60 percent by 2007. (Reuters)

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