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Tuesday, August 07, 2007
HD LCD Prices could Rise Due to Shortage

LCD HDTV prices could stabilize or even rise later this year in part due to a production cutback.

According to an article in TWICE magazine, LCD panel shipments were reduced in the second quarter of this year, leading to fewer supplies of some LCD high-def sets.

The shipments were reduced because panel makers were reacting to an oversupply of LCD panels in the fourth quarter of 2006 and early this year.

However, a stronger-than-expected demand for LCD TVs in the second quarter coupled with the production cutback has led to the panel shortage.

?Panel shortages are affecting everybody in everything from TVs to portable DVD players, and car entertainment products,? Tom Malone, president of Audiovox, told TWICE. ?On the regular TV side for everybody it?s been a struggle. You may get 70 to 80 percent of what you order. You just have to factor that into your buying, and I think the buyers understand what?s going on today. So they are hedging their bets.?

LCD panel makers plan to increase production this month to avoid possible shortages this holiday season. But TWICE reports that some retailers have used the reduced supplies as a reason to raise prices.

?The 52-inch panel price has been going up for Q2. Even in 37-inch I see price stabilization, and 40-inch and above panel prices continue to go down, but the rate of reduction is very small," Sweta Dash, an iSuppli research director, told TWICE.

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