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Electronics Production | October 25, 2004

LCD's doing weaker than expected

Hyped forecasts give way to excessive cynicism—but better market conditions on the way according to iSuppli.
Weaker-than-expected demand and pricing for LCD TVs and flat-panel desktop PC monitors—combined with rising production capacity—have spurred speculation that the good times are over for the LCD panel industry. However, just as there is irrational exuberance during industry upturns, the present market slump appears to have generated excessive pessimism, iSuppli Corp. believes. The current round of price cutting and a slowdown in capacity increases, combined with pent-up demand among consumers and businesses, will restore balance to large-sized LCD supply/ demand during the present quarter, iSuppli predicts.

While the bloom is off the LCD-TV rose, television will remain a significant growth market for the LCD business. For LCD panel makers to achieve success in the television market, it will take some time, as well as prudent investing. The biggest question is the level of profit in store for LCD makers as this process moves forward, according to iSuppli.

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