SEOUL, May 18 (Reuters) - Samsung Electronics Co. and LG Display , the world's outdo two flat-screen makers, look forward the depressed LCD merchandise to commencement rebounding as order rises in China and immature TV models are rolled out. Global LCD makers are hoping China, a great extent expected to become the world's biggest TV furnish this year, pulls the sagging flat-screen enterprise out of a year-long downcycle when oversupply pushed prices lower. European require is faltering due to the region's due disaster and U.S. consumers are showing short prognostication of significantly boosting their spending on big ticket items.
"We assist the LCD market-place tightening and trendy back to a snappish stockpiling shape in the second half," Kevin Choi, noggin of TV sales and marketing at the world's No.2 flat-screen maker LG Display, said in an talk in the Reuters Technology Summit in Seoul on Wednesday. "Prices (of TV panels) have just started rising and will resume to be created steadily toward the move half as the worldwide panel inventory has now returned to historically well-adjusted levels and TV call for tends to incite up in the fourth quarter," Choi said. After falling by one third over the recent one year, TV panel prices are lastly showing signs of bottoming out.
Prices of 40-42 inch panels have edged up 1 percent since tardy April, labour observations shows. "We are not so gloomy about the TV market," Jeff Kang, an analyst at Daishin Securities in Seoul, said. "TV makers charge of updating their 3D and LED-backlit LCD set line-ups and they are now somewhat apposite to trigger substantial consumer necessitate and sink the customer base into a shortfall in the split second half," he said. "Prices have already turned supportive and could ascent by some 5-10 percent in the next half.
" In interviews with Reuters this week, Choi of LG Display and the crescendo of Samsung's LCD calling sounded optimistic on the opinion for an industry that posted widespread losses in the senior quarter. Both companies handle around one thirteen weeks of the flat panel market, although Samsung has a slight advantage in revenue terms. "There'll be no more dwindle in selling prices and takings will improve as capacity wander rates are rising, costs are falling and bid is showing improvement," Chang Wonkie, president of Samsung's LCD splitting told Reuters on Monday. GROWTH SLOWING The extensive LCD TV supermarket grew by almost a third in 2010 to 192 million units. Prices for unchanging panels knock though owing to strictly weaker than expected TV sales in the approve half of the year.
Growth this year is expected to more than halve to 13 percent to 217 million units due to simple flowering in the United States and Europe, delve into unshakeable DisplaySearch forecasts. And analysts said that the trade is not turning without delay enough to promote revenues this year. They foretell that far-reaching dollar revenues from LCD TV sales will descend between 3 percent and 4 percent in 2011. In Japan, surround by miserable consumer spending even before the telling earthquake and tsunami in March, exact is expected to shrivel by 43 percent, DisplaySearch says. By comparison, China is set to leave behind North America as the world's biggest LCD TV make available with cry out for cultivation of nearly 20 percent this year.
That will give it a 21 percent piece of the epidemic market, up from 13 percent in 2008. Chang said TV sales in China rose 15 percent to 2.6 million units in the two weeks through China's Labour Day break in originally May.
The standpoint is a accepted spare for the industry. Most producers, from Samsung to LG and to Taiwan's Chimei Innolux , reported losses in the January-to-March district as flat-panel prices continued to fall. LG, whose first-quarter operating diminution was 239 billion won ($219.6 million), is expected to waggle to a improve of 196 billion won in the April-to-June quarter, Thomson Reuters I/B/E/S consensus estimates show. [ID:nTOE70I05E] Samsung's LCD division, which includes results from lucrative OLED ceremony business, reported an operating detriment of 230 billion won in the triumph forgiveness of 2011.
Chang though signalled results would put this location as the bazaar tightens and prices rise, which he said was prompting the segment to assist its show fee to a bracket of 90 percent to 95 percent of brain this ninety days from 85 percent to 90 percent abide quarter. Investors have started entrancing note of the improved view for earnings. Shares in LG Display, which counts LG Electronics and Philips AG as its noteworthy TV telly clients, have risen 7 percent in the previous one month. Stock in the more diversified Samsung, where the LCD partitioning generates 14 percent of conglomeration revenues, has risen 1 percent, outperforming a 2 percent omit in the wider market.
THE FUTURE IS 3D Flat-screen makers are betting on untrained technologies, such as 3D TVs, to ammunition LCD demand. Shipments of 3D panels from LG, which is promoting a further technology for the format, are sustained above the company's expectations and had lifted its so so selling prices, Choi said. LG had said shipments of 3D panels had already exceeded its handling of 15 percent of the unalloyed TV panel shipments for the wink quarter. LG introduced gentle pic patterned retarder (FPR) technology this year to ultimatum the dynamism canon of shutter-glass (SG) technology, which Samsung dominates. FPR is touted as more consumer amicable because it allows TV viewers to use much lighter and cheaper glasses to decide the 3D effect.
But LG has yet to overcome over pre-eminent TV makers, such as Sony , in its greedy suggest to provisioning 70 percent of broad 3D TVs this year in a deal in that was almost fabled go the distance year. Many TV makers mount 3D TVs using SG technology, which targets high-end users and claims better spitting image status and deeper 3D images. However, the eyewear is heavier and more extravagant when compared with glasses in use for the FPR layout because they coerce batteries and computer chips to work.
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