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LG Says LCD HDTV Prices Have Hit Bottom

by January 20, 2009

The price of LCD based HDTV panels have finally hit rock bottom, so says LG Chief executive Kwon Young-Soo. If you’re sitting on the fence about a new LCD panel purchase – the steep price drops might have already subsided, if LG is to be believed. As the world’s second largest LCD manufacturer LG should know a thing or two about their value. After all, the company was one of those implicated of LCD price fixing earlier this decade. 

It’s been a tough quarter all around, the pain of recent financial hard times hasn’t spared South Korea’s LG. The company reported its worst-ever quarterly loss, mostly due to the free-falling price of LCD panels. That it was treated to a $400 million US fine for its part in the price fixing scandal certainly hasn’t helped. 

The troubles aren’t unique to LG. The LCD market worldwide is soft on profit due to declining prices and limited demand in the wake of our current financial crunch. Analysts predict all LCD manufacturer’s will suffer further losses in the first half of 2009. 

But Mr. Kwon sees a silver lining for the LCD market. He believes it has hit bottom, now the only direction it can go is up. 

TV panel prices will likely stop the downward trend and recover.” Kwon said. 

This could mean the significant price drops we’ve seen on big-screen HDTVs quarter after quarter could be at an end. If prices level off it might not be great for consumers looking for a bargain but it might mean a more stable market for manufacturers. 

In the face of short-term bad news for HDTV LCD panels, LG plans to adjust investments by putting its money behind premium LCD screens for mobile devices. 

The company is investing heavily (to the tune of $427 million) into LTPS or low temperature polysilicon technology. The new mini- LCD panel technology will help LG remain competitive in the growing Smartphone market.

About the author:

Wayde is a tech-writer and content marketing consultant in Canada s tech hub Waterloo, Ontario and Editorialist for Audioholics.com. He's a big hockey fan as you'd expect from a Canadian. Wayde is also US Army veteran, but his favorite title is just "Dad".

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Recent Forum Posts:

just-some-guy posts on January 20, 2009 21:28
Pyrrho, post: 511958
In my opinion, they are just saying that in order to improve sales. If people believe them, then they will not postpone purchases in the hopes of lower prices in the future. In other words, I do not believe LG, and suspect them of simply being liars who will say anything in order to make more money.

In fact, if betting were allowed here, I would be willing to bet that prices will continue to fall. And please, next year, someone revive this thread and either tell me that I was right, or point out that my prediction was wrong. I welcome it.

i agree. except for right now. the feb 17 thing has prices going up, i seen it myself. but after that wears off prices will be lower than before.
Pyrrho posts on January 20, 2009 18:09
In my opinion, they are just saying that in order to improve sales. If people believe them, then they will not postpone purchases in the hopes of lower prices in the future. In other words, I do not believe LG, and suspect them of simply being liars who will say anything in order to make more money.

In fact, if betting were allowed here, I would be willing to bet that prices will continue to fall. And please, next year, someone revive this thread and either tell me that I was right, or point out that my prediction was wrong. I welcome it.
bandphan posts on January 20, 2009 18:06
drdawg, post: 511913
they will ALWAY tell you that they are right at their cost or below it, that is bull crap…too bad unlike cars where we know the invoice price, we can't find the invoice price for TV's.

I can tell you retailers margins are not that large on displays, and on the smaller sizes they are very low. On occasions they make better margins with Exclusive products.
I rember with the 60" 20k Sony XBR plasma dropped 10k in one year. As for paying invoice on cars thats part of the sell and try even paying that for Lexus.
Matt34 posts on January 20, 2009 16:33
MDS, post: 511857
I bought Toshiba's top of the line LCD about six months ago and paid $3000. On a whim, I checked Crutchfield the other day and the same TV is now $2200.

Prices continue to drop but you have to pick a point you are comfortable with and just go with it. When large size LCDs from the top tier manufacturers are available for under $1K at Wal-Mart then we'll know that the technology has matured and there probably won't be any further reductions.

Who would have thought even a year ago you could get a 50" plasma for under a grand? I sure didn't but now I have one sitting in my livingroom.

I do think this kind of spectulation of an entire market by a manufacture to be of little value.
jamie2112 posts on January 20, 2009 16:21
They must be hurting to start a bogus marketing scheme IMO. I won't ever trust them after their price fixing….Tools…..
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