LG Display has increased fears of rapid supply growth of LCD panels by announcing it is considering constructing a new LCD production line to meet demands. Manufacturers of LCD television products have been enjoying a healthy level of demand for LCD flat-screens, bolstered recently by Chinese holidays and sporting events like the Winter Olympics.
However, concerns are taking root in the industry that it may return to a state of oversupply as manufacturers beef up production to capitalize on the demand. Controlling supply is important for players in the industry to maintain profit margins for the technology.
“Although demand is strong, growing capacity will become increasingly burdensome for the industry,” said Jason Kang, an analyst at NH Investment & Securities. “Supply is already growing and the growth will be faster next year.”
LG plans to begin operation of a separate production line in the first half of 2010, while Taiwanese rivals are increasing factory utilization. “We are considering increasing capacity because we have been unable to meet all client demand for some time,” said an LG Display spokesman. “But nothing has been decided yet.”
LG Display CFO James Jeong revealed to investors just last month that the company was meeting under 90 percent of orders received and that the situation was likely to continue for months.
Result for: holidays
Nintendo America has announced two new limited edition DSi holiday bundles, each of which will include five games pre-loaded.
The “Brain Teaser” bundles will include a white colorway handheld and Brain Age Express Arts & Letters, Sudoku and Math, Clubhouse Games Express: Card Classics and Photo Clock.
The “Mario” bundle will include a Metallic Blue handheld and Mario vs Donkey Kong: Minis March Again, Dr Mario Express, WarioWare: Snapped, Mario Calculator and Mario Clock.
Each bundle will retail for $169.99, the same as the console by itself, while including $20-25 worth of bonuses.
“These limited edition bundles come packed with some of the great Nintendo DSiWare games and applications that have made Nintendo DSi such a big hit with shoppers young and old,” added Cammie Dunaway, NoA executive VP of sales and marketing. “The special price and pre-installed titles make the bundles a huge value for the holidays.”
Result for: holidays
According to a new NPD analysis, Blu-ray will finally break into the mainstream in 2010, especially as prices continue to drop.
The company researched consumers using Blu-ray set-top boxes (not including the PS3) in February 2008 and in August of this year, and the figures clearly showed that BD is out of the “early adopter” phase and into the “dreamers” phase which is the group that wants the new technology but are “deterred by price.”
Regardless, NPD says falling prices, strong holiday sales, and a slowing uptrending economy will finally push Blu-ray from “niche” technology to “mainstream.”
In the 2008 study, over 64 percent of users were early adopters, which only account for 20 percent of the entire market. By August however, the number had been reduced to 38 percent, and replaced by “dreamers” and “sensibles,” a group full of middle aged families who like the technology but waited some time before investing. Those two groups account for over 40 percent of the entire market.
“In the last year, we have made great strides toward becoming mainstream, but we’re not quite there yet,” notes NPD analyst Russ Crupnick, via VB. “But going into the holiday season, we are seeing a combination of fairly reasonable price points on hardware and a lot of content. By February, after the holidays, it’s going to quickly look more and more mainstream. We are on that path.”
There are however still a decent amount of “late adopters” who do not care for the technology or are neutral. Neutral consumers are at 17 percent while “anti-tech” (users that frankly hate Blu-ray) are at 7 percent.
