GIANT KOREAN combine Samsung Electronics has acknowledged that prices for LCD monitors and TVs are way too high and has forecast sizeable price cuts in the future. The firm reported its second quarter results in Seoul, Korea today, turning in a net profit of 3.13 trillion won on revenues of 14.97 trillion won. (US$1=KRW1,165). Most of the sales were for DRAM devices, LCD panels, and on mobile phones.
The Wall Street Journal quoted a VP for Samsung"s LCD business as saying notebook LCD screens may fall by 10 per cent over the next few months. But, more significantly, prices of 17-inch and 19-inch panels could be cut by 20% because demand is weak. Worse than that, the LCD business is now moving into glut mode. Samsung and Sony yesterday said that they"d opened a factory in Korea to churn out ever more panels for the fast-growing LCD monitor and TV market.