Isochroma
07-25-08, 03:24 PM
Future Looks Dim for LG's Mid-Size PDP Business (http://english.chosun.com/w21data/html/news/200807/200807240014.html)
24 July 2008
LG Electronics' staple 32-inch plasma display panel module may be facing a critical situation as the market for the product is expected to shrink to one third its current size in four years, a market researcher says. U.S.-based DisplaySearch says PDP TVs will lose out in competition due to the falling prices of LCD TVs and have no ground in the below-40-inch mid-size TV market.
The researcher predicts the 32-inch PDP TV market will fall from 1.8 million units this year to 840,000 by 2011 and many believe LG's PDP business will suffer a direct hit.
LG Electronics is the sole global manufacturer of modules used in 32-inch PDP TVs. They are also a staple product for the company, accounting for 43 percent (537,600) of all the PDP modules LG produces.
DisplaySearch predicts the LCD TV market will reach 178 million units by 2012 and the PDP TV market 17.7 million. In other words, the PDP TV market will shrink to a tenth the size of the LCD market in four years. "PDP TVs are falling markedly in competitiveness," said CJ Investment & Securities analyst Kim Ik-sang. "There would be no way out if LG misses the right timing for a corporate alliance or sell off."
LG responded, "32-inch PDP modules were from the beginning a temporary niche product. We will shore up competitiveness through production of larger modules. The lifespan of 32-inch modules will be longer than predicted by DisplaySearch, as Panasonic is also planning production."
24 July 2008
LG Electronics' staple 32-inch plasma display panel module may be facing a critical situation as the market for the product is expected to shrink to one third its current size in four years, a market researcher says. U.S.-based DisplaySearch says PDP TVs will lose out in competition due to the falling prices of LCD TVs and have no ground in the below-40-inch mid-size TV market.
The researcher predicts the 32-inch PDP TV market will fall from 1.8 million units this year to 840,000 by 2011 and many believe LG's PDP business will suffer a direct hit.
LG Electronics is the sole global manufacturer of modules used in 32-inch PDP TVs. They are also a staple product for the company, accounting for 43 percent (537,600) of all the PDP modules LG produces.
DisplaySearch predicts the LCD TV market will reach 178 million units by 2012 and the PDP TV market 17.7 million. In other words, the PDP TV market will shrink to a tenth the size of the LCD market in four years. "PDP TVs are falling markedly in competitiveness," said CJ Investment & Securities analyst Kim Ik-sang. "There would be no way out if LG misses the right timing for a corporate alliance or sell off."
LG responded, "32-inch PDP modules were from the beginning a temporary niche product. We will shore up competitiveness through production of larger modules. The lifespan of 32-inch modules will be longer than predicted by DisplaySearch, as Panasonic is also planning production."