PDPs face strong pressure from increased 32-inch LCD supply

Max Wang, Taipei; Rodney Chan, DIGITIMES [Monday 14 July 2008]

TFT LCD makers are stepping up their pressure on PDP competition in the 32-inch TV segment, which has still seen more robust sales than larger-size segments amid the economic downturn.

LG Electronics launched its 32-inch PDPs last year chiefly for the China market, as TV vendors turned to the plasma alternative amid a shortage of 32-inch LCD panels. Competitive prices have boosted sales for 32-inch PDP TVs.

But with panel makers devoting more of their advanced-generation lines to making 32-inch applications, supply for the segment has eased sending prices falling not only for 32-inch LCD panels, but also for PDP ones, industry sources pointed out.

Currently, prices for 32-inch LCD TV panels are about US$320, but some panel suppliers are reportedly offering quotes as low as US$280 to compete for orders, the sources said.

For 32-inch PDP applications, prices are currently about US$270, but some suppliers are offering prices as low as US$240, the sources added.

With prices likely to continue dropping, worries about profitability for the 32-inch segment are deterring some suppliers from joining the competition. Samsung SDI, which was said to be ready to volume produce 32-inch PDPs in July, has abandoned the plans, the sources claimed.