"LCD prices have risen sharply while companies have been working to lower manufacturing costs by moving production to more advanced facilities. That should enable most LCD makers to report a second quarter profit and the outlook for the third quarter is even better," said Hyun-Sik Moon, an analyst at Seoul-based Meritz Securities.
The price of a 17-inch LCD monitor panel rose to $127 in early July from $122 late June, according to Taiwan-based market research firm WitsView Technology Corp. Meanwhile, the price of the mainstream 32-inch LCD TV panel rose to $320 from $315 in the same period.
Executives at AU Optronics Corp., Taiwan's largest maker of LCDs by revenue, said the LCD maker will post a profit in the second quarter, after reporting a record loss of 5.11 billion New Taiwan dollars in the first quarter.
U.S. market research firm DisplaySearch this week revised upwards by 6 percent its 2007-2008 forecast for revenue in the global flat-panel-display industry, citing rising LCD prices. The firm now expects industry revenue to reach $92.7 billion this year and $102.0 billion in 2008.
Suppli analyst Sweta Dash said 40-inch and above TV panel prices may continue to fall in the third quarter but at a slower rate.
"Even though supply will increase, there has been a major slow down in capacity expansion plans in 2007 that will help to keep supply tight in the third quarter," which should prevent prices from falling too steeply.
Source: Forbes