By Rhee So-eui and Marie-France Han
TOKYO/SEOUL (Reuters) - Flat-screen maker LG Display Co Ltd (034220.KS: Quote, Profile, Research, Stock Buzz) expects continued tight supply in the liquid crystal display (LCD) market in the second half and is seeking to increase ties with Chinese TV makers, a company executive said on Thursday.
"The overview of the second half is that (the market) will be tight," Champ Shin, vice president in charge of TV screen sales, told the Reuters Global Technology, Media and Telecoms Summit.
Despite the U.S. economic slowdown and heavy snow in China earlier this year, LG Display does not see any risk factors that are likely to drive demand down, Shin said.
LCD makers including No. 1 Samsung Electronics Co Ltd (005930.KS: Quote, Profile, Research, Stock Buzz), second-ranked LG Display and AU Optronics Corp (2409.TW: Quote, Profile, Research, Stock Buzz) are enjoying strong demand as the summer's Beijing Olympic Games fuels demand for thin TVs.
However, intensifying competition in the flat-screen TV market this year is clouding the otherwise strong outlook in the sector. Sony Corp's (6758.T: Quote, Profile, Research, Stock Buzz) aggressive price cuts in the key North American market have recently raised concerns about a margin-eroding price war.
But Shin downplayed the impact of those price cuts.
"Over the past five months we haven't seen much market share increase in Sony brands in the U.S., even though they dropped their prices twice."
Shin didn't give price forecasts for the second half but said major brands' entry model 40-inch LCD TVs, currently selling for around $1,200, could come down to $1,000 by the year's end. Continued...
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