The aggressive price erosion that has seen flatscreen LCD TVs plummet in value over the past year may finally be easing, according to the latest data from market analysts WitsView.
Over-supply is being brought under control as manufacturers reduce the output of both widescreen TV panels and larger displays used for PC monitors. WitsView is even predicting that the prices of 17-inch monitor panels will rebound this Summer. This has been confirmed by LG Philips, which has indicated that the supply of 17 and 19-inch display panels worldwide is beginning to run low.
LG.Philips’s LCD business recently reported a net loss of 339 million dollars, caused by flat sales throughout the first half of 2006.
“We were significantly impacted by much greater than expected industry pricing weakness,” admitted Bon Joon Koo, vice chairman and CEO of LG.Philips LCD. It will take significantly longer for the TV market to stabilize though. According to WitsView’s Jocelyn Chen, this is because “seasonal sales demand won’t emerge till the middle of third quarter.” This view is echoed by Samsung, which says it expects panel prices to stop fluctuating in the third quarter, as TV sales move into seasonal high-gear.