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Make it Up in Volume?

October 23, 2006 | Author: Ibex Marketing

A report in today’s DigiTimes Display News cites industry sources that claim LG.Philips LCD is cutting its price for the 42″ LCD TV panel to $10 less than rival Samsung’s 40″ panel. According to the report, this places the price about $200 below the company’s production costs.

While this can be seen as good news for consumers, it’s not great for LG.Philips, which has already been awash in red ink. It will also take time for the lower prices to work their way through the pipeline, getting to the set manufacturers next month, so we may not see the effects of these cuts until the end of this year at the earliest. And since they’re essentially matching Samsung’s price, the net effect may be just to shift some products from Samsung to LG.Philips panels, rather than show up as a major price cut.

Still, competition is good, and so long as these giants can stay in business at these prices, it should mean that we’re getting the best possible price at the checkout counter.