APRIL 2008 W2 ALERTNew Price War Erupts
LCD and Plasma Panel Suppliers Fight for Market Share
<Nikkei-TOKYO><April 10, 2008>According to a report today in the Nikkei, LCD and plasma panel makers have launched an all-new price war in a fight to garner maximum share of the market for smaller panel television products.
Manufacturers are anticipating faster growth in moderate screen sizes due to the economic difficulties in North America. Previously, the competition had been to produce larger and more profitable screen sizes. Mid-size panel volume should spike, they reason, as a result of the China Olympics and the shift to digital television in the U.S.
The report indicates that Samsung Electronics Co., through higher panel yields, is enjoying about a 15% advantage over their chief rival, Sharp Corp. Samsung is producing eighteen 32-inch LCD panels from each 2,200mm x 2500mm glass substrate. Sharp currently produces fifteen 32-inch LCD panels from a single 2,160mm x 2,460mm glass substrate. However, the report says that Sharp is about to move to an eighteen panel yield.
Separately, the Nikkei reported that LG Electronics plans top boost production of 32-inch plasma panels from 80,000 units in the January-March quarter to 90,000 units for the April-June period and 100,000 units for the July-September quarter. Half of this production is earmarked for the China market.