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LG, Samsung Turn Off Monitors

By Oonagh Reidy | Thursday | 28/06/2012

Demand for monitors are to fall as mobile devices ascend.

As smart mobile devices prevail, makers are suffering weak demand for traditional PC monitor sales.

The fall is is being blamed on global economic downturn and the lack of apparent development in terms of new functions for some time, says TrendForce analysts.

Big brand panel makers like LG and Samsung have started to transform their strategies as a result, and have sharply reduced production size in monitor panels during Q2, say analysts, and transferred capacity to tablet and TV panel in response to stronger demand.

Samsung previously had capacity to produce 3 million monitors monthly; however, shipments are projected to slide, between 2 to 2.3 m units per month, while LG shipments look set to fall from 56 m to 52 m units, say analysts.

And a further downtrend is possible depending on the future market outlook, the analysts warns.

But lets not forget both Korean makers LG and Samsung Display are both major panel makers of Apple iPads, but also need to support their own TV brands to make up the insufficient TV panel supply, warned analyst Jeffy Chen.

39" and 50" TV panels developed by Taiwan panel makers offer better profitability leading to to a drop in the production of 32", 40", 42", and 46" sets and is "unlikely" to fulfill panel demand from big TV brands.

Due to the significantly increased demand for 9.7" (the iPad screen) and 42" panels, LGD reduced its production of 19", 22" and 23".

"Market supply and demand is undergoing adjustments owing to the shrinking monitor supply from Korean panel makers" but future panel prices will stay steady due to this supply decrease, TrendForce predict.

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