LCD eight generation production line forced TV price avalanche

"LCD TV prices too fast," 51 "promotional period to spend thirteen thousand yuan to buy a 37 Inch LCD TV in August 9th, large and medium-sized electrical appliances price has been reduced to 8900 yuan." Consumer Xia told the Financial Times reporter said.

With the sharp reduction in LCD TV, LCD TV seems to have spread across the starting line.

IDC latest report shows that China LCD TV market in 2006 shipments are expected to reach 4 million 90 thousand units, will be 209% higher than in 2005.

With the LCD TV market performance is different, the global LCD panel suppliers LG-PHILIPS second quarter loss, the same is the LCD panel suppliers, AUO and Samsung Electronics second quarter net profit fell sharply.

The eight generation of international competition

The "Financial Times" from the Sharp Co to understand, compared to the second quarter global LCD panel suppliers generally project profit downturn, SHARP has worked because of large size and high price strategy of LCD TV, the profit in good condition, become the profit performance of the second quarter of the global LCD panel suppliers best.

SHARP is now in urgent need of the eighth generation LCD production line to achieve market competitiveness." Sharp Co President Machida Katsuhiko (Katsuhiko Machida) so said.

SHARP President Machida Katsuhiko's insistence, the original plan to put into operation in October, the eighth generation of SHARP LCD panel production line in advance of two months, in early August officially put into operation. And will be officially used in the production of all its large size LCD TV in September.

SHARP side said: SHARP eight generation line using a glass substrate of 2160 mm X2460 mm, can produce a 8 inch screen or 6 inches display 50 inches. The factory production plan monthly production of 15 thousand glass substrates, by the end of March next year yield doubled, to increase production capacity in 2008 to 90 thousand per month glass substrates."

It is understood that the eight generation of SHARP LCD products in addition to the supply of the Japanese domestic market, will be mainly sold to China, the United States and the European Union LCD TV assembly plant.

In the big screen LCD TV market is expected, the Japanese Sony Corp and Samsung Electronics Co., Ltd. invested 200 billion yen plan to build the South Korea in the eighth generation LCD panel production line.

It is interesting that, with Sharp Co's production strategy is exactly the same, the production line was originally scheduled for mass production in August 2007, and now plans to advance to the end of 2006 put into operation.

And Chi Mei gave up the original 6 generation line expansion plan, ready to build the 8.5 generation LCD panel production line.

As for LG-PHILIPS's eighth generation production line, it was stranded because of falling profits and rising inventories. Its chief executive Bon Joon Koo stressed: LG-PHILIPS to re evaluate the next generation production line to build matters, but also announced plans to postpone the existing plant investment, and cut capital expenditures in 2006."

In the face of large size LCD panel Market rival, the international LCD panel oligarchs vowed.

SONY executive vice president Ihara Katsumina: SONY's goal is to become the world's largest LCD panel manufacturers."

Allegedly, SONY and Samsung cooperation in the eighth generation LCD production line will be achieved during the year, mass production can reach up to 50 thousand per month, with the current generation of seventh lines per month capacity of 90 thousand.

Ihara Katsumi Carter, Machida Katsuhiko immediately said, SHARP plans to launch the LCD technology update, update the technology may be the tenth generation LCD panel production line of 3050 mm X 2850 mm, it will be used for cutting large 60 Inch LCD screen.

A large size of the international LCD panel market battle on the curtain.

When the price of liquid crystal off?

With the production of SHARP's first eight generation LCD panel production line in August and the end of the SONY - Samsung production line of the eight generation, more than 42 inches LCD panel will usher in the peak price." Industry experts predict.

"The 42 inch LCD panel prices will directly lead to more than 42 inches large screen LCD TV prices, causing more than 42 inches LCD sales increase, resulting in 32 inch and 37 Inch LCD TV price cuts." Gome Wanliu bridge shop responsible person told the "Financial Times" said.

Gome's speculation is not unreasonable. The State Council Development Research Center and Chinese Electronic Chamber of home appliances group published the "2006 Chinese flat-panel TV city consumer demand situation research report" survey shows that, at present, consumers are expected to buy 32 inch LCD TV the proportion has reached 85%.

The report pointed out that in the group to buy LCD TV, the living room area of 20 to 30 square meters of users, the mainstream products stable at 37 inches and 42 inches.

Thus to analyze the upcoming golden nine silver ten, LCD TV market competition will focus on more than 37 inches. Substantial increase in sales of large screen LCD TV, following the 40 inch breakthrough million, the most consumer concern in the 42 inch LCD will also fall below the million.

This continued price cuts will make LCD panel suppliers profit margins shrink.

From the second quarter earnings on the panel manufacturers, South Korea's second largest LCD panel suppliers LG-PHILIPS second quarter loss, the main reason is the LCD panel price decline caused by too much, for example, 32 inch panel prices fell from $546 to about $460 now, the average price of around $375.

When the size of the relatively small LCD panel prices dropped to the critical point of profit, the LCD panel suppliers will reduce the market for