Display market reports bumper sales

Analysts are warning of a tightening of supply for the display market after stronger than expected sales of TVs and monitors during the 2007 holiday season.

Demand in the key US market rose more than 70 per cent compared with the previous year, according to researchers from Japan's Nomura Securities.

Sales of 32in LCD TVs are strong, and there has been a significant rise in sales of 40in and larger models, the researchers said.

LCD panel manufacturers such as Korea's LG-Philips LCD and Samsung and Taiwan's AU Optronics saw operating margins surge from below five per cent at the beginning of 2007 to almost 20 per cent by the third quarter.

Inventories are low following the strong holiday season sales, promising extra business for manufacturers as distributors restock.

"In a typical year, the first quarter is a slow period for [LCD] panel makers, but we think it is increasingly likely that Q1 2008 will be busy, without the usual seasonal decline," said Nomura's analysts.

Demand could exceed supply by more than 10 per cent by the second quarter, possibly pushing prices higher.

While LCD prices will continue to fall as manufacturing costs decrease, the average price drop during 2008 could be as low as five per cent, Nomura predicts.

According to the company's forecasts, 175 million LCD monitors and 133 million LCD notebook screens will be sold during the year. LCD TV sales will exceed 100 million units annually for the first time ever.

See also:

Profit at last for LG Philips

But agressive expansion may lead to oversupply, analysts warn  10 Jul 2007

HDTV content revenues to soar in Asia

International video content to drive sales of $8bn by 2011  02 Jul 2007

Samsung promises sub-$1,000 52in LCDs

Key component of large flat screen TVs to get much cheaper  27 Jun 2007

Samsung turns to overseas LCD suppliers

Cost control helps Korean giant retain LCD market share lead  21 Jun 2007

LG.Philips to move assembly lines to China

Philips wants out of joint venture as profits fall  13 Apr 2007

Giants lured to booming Chinese LCD market

Beijing Olympics expected to boost sales  15 Mar 2007

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