Monday, 17 July, 2006
Samsung suffers as LCD TV prices fall
Samsung’s earnings have been hit by the falling price of LCD panel televisions.
The Korean giant said that it had faced “difficulties due to declining prices in mainstay products”, along with other main players in the LCD market.
"The climate for the LCD market was weak,” the company added.
“In the third quarter, increased demand for LCD TV panels is expected to dominate the industry dynamics.”
Woosik Chu, senior vice president and head of Samsung Electronics’ investor-relations team, said that the flood of LCD units had pushed down prices, but the outlook was soon set to change.
“We expect the second quarter to mark the trough and anticipate improvements in the second half of this year,” he said.
Sales of 40-inch and larger panels actually jumped 87% quarter-on-quarter to 1.2 million panels due to strong demand for larger TVs, but revenue was damaged as a result of the lower prices for them.
LCD television makers are competing with plasma screen rivals, which have dominated the larger screen industry until now.
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