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Thursday, October 08, 2009
Plasma Display Panel (PDP) Module Makers Find Breakthroughs through Radical Reform


Displaybank, a global authority in market research and consulting for the display industries, today announced that Plasma Display Panel (PDP) Makers are in the process of revamping endeavors and LG Electronics especially shows recognizable changes.

These and other findings are disclosed in Displaybank?s newly updated Monthly PDP Module Shipment Data, which covers Plasma Display Panel (PDP) module shipments on a monthly basis.

In August, worldwide PDP module shipments increased 12% M/M to 1.295 million units. This is US$410 million in terms of revenue which grew 8% M/M. With the recent economic recovery, shipments volume is on the rise but it still shows negative growth Y/Y. Jusy Hong, a research analyst at Displaybank explains the negative growth Y/Y currently shown is expected to turn to positive after September when quantities are expected to be rising.

Hong added the focus of the recent PDP module trend is the increases in both shipments and market share of large-area over 50"s and Full High Definition (FHD) products. Hong notes on the remarkable changes for LG Electronics in terms of its past marketing in low-cost PDP market evidenced in launching 32" PDP module. Through the oversupply of Liquid Crystal Display (LCD) panel during the end of 2008 which led LCD panel price to largely drop, LG Electronics underwent difficulties as 32" PDP module demands plummeted. However, LG Electronics stopped 32" model production and eliminated low resolution products including 42" SD and 60" HD to refocus its product lineup with large-size and FHD. In return, LG Electronics created profit for the first time in PDP module business on a monthly basis during last second-quarter, and currently have greatly improved profit/loss situation.

Samsung SDI also focuses its product strategy with large-size and FHD. By supplying lower pricing modules compared to same-sized LCD, Samsung SDI aggressively targets large-area TV market over 50".

Andy Yu, Vice President in Display Research group at Displaybank expects difficulties in large installment investment for future production capacity expansion from two Korea-based PDP makers.

Yu suggested simplified product lineup focused on certain strategic models that coincide with customers? needs in order to raise PDP business efficiency under the current situation. Through this Yu notes, specialized production line will be enabled and yields improvement as well as maximized cost saving effects can be realized. (Simplified lineup -> Specializing production line -> yield improvement -> cost saving -> secure price competitiveness)

This is very effective method to prepare for the product price fall situation and will become a key to continue competing against LCD, Yu added.


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