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Samsung Expecting Big Profits In LCD Business

by Darren

Samsung has been doing very well in recent years, and they’re expecting a burst in their profitability in 2008 thanks to favorable conditions in the LCD Business. The reason is as simple as “supply and demand.”

The average supply growth rate of LCDs by the top five players will sink to a three-year low of 21 percent in 2008 from an estimated 44 percent this year and last year’s 62 percent mostly due to sagging shipments from Taiwanese manufacturers, including the world’s third-largest manufacturer AU Optronics, Samsung said.

Samsung said panel prices will continue to rise in 2008 thanks to growing demand for large- and medium-sized panels.

“Demand for flat screens bigger than 10 inches will rise over 15 percent to some 416 million in 2008 from 361 million this year, while that for flat screens smaller than 10 inches will experience double-digit gains,’’ the company said.

This market forecast was in line with local brokerages’ views that demand will rise about 30 percent in 2008 whereas supply will fall by less than 25 percent.

The best news for Samsung is: LCD TVs are gaining in popularity, so the trend should hold for the foreseeable future.