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Tuesday, March 14, 2006
Philips Hits Production Problems on LCD TVs

Philips cannot meet demand for its top of the range LCD television sets because of production problems with display panels, the consumer electronics company said on Monday.

The panels, the key ingredient of any LCD television set, come from LG.Philips LCD, a joint venture with LG Electronics.

Expensive LCD models have the highest profit margins and generate most of the income of consumer electronics. Philips declined to say if the shortfall would impact first quarter earnings, but said supply would meet demand in April.

The shortages apply to Philips' top LCD models in the 9830 series that come in the sizes 32, 37 and 42 inch. They have retail prices between 2,300 and 5,000 euros ($2,740-$5,970).

By April, the 9830 series will start to be replaced by the successor series called 9831 built partly on the same chassis.

Philips said yields were more sometimes an issue, especially with new products.

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