Samsung and LG Display, the two biggest makers of flat TVs, expect the market for LCD panels currently in decline, begins to recover with increased demand in China and launching new models.
Global manufacturers of LCD panels expect that China, whose TV market is expected to become the largest in the world this year, to boost the industry flat-panel displays after a cycle of decline that has lasted a year and started when pushed stocks higher prices down. The European demand is faltering due to the debt crisis in the region, and U.S. consumers show little sign of significantly increasing their spending on items with higher prices.
"We see the market for LCDs and tight inventories returning to stay low in the second half," said Kevin Choi, head of TV sales and marketing at LG Display, told the Reuters Technology Summit in Seoul on Wednesday. "Prices (of panels for televisions) only began to increase and continue to grow steadily in the second half, as global stocks now returned to normal historical levels and demand for TVs tends to grow back in the fourth quarter," said Choi.
After losing a third of its value last year, prices of panels for TVs are finally showing signs of recovery. Prices for panels 40 inches and 42 increased 1 percent since late April, industry data showed. In interviews this week, Choi, LG Display, the director of the division of Samsung's LCD panels were optimistic about the outlook for the sector that reported large losses in the first quarter.
"There will be no drop in sales prices and profits will improve with rates increasing production capacity, costs and falling demand showing improvement," said the president of Samsung's LCD division, Chang Wonkie on Monday.
