PDP shortage may open the door for LCD TVs, says DisplaySearch
One industry’s fizzling out is another industry’s chance to shine! Due to a strong demand for plasma TV’s and closing of PDP fabs, the LCD market has a chance to take ahold of a stronger market share. Don’t hold your breath though, as this may not occur until around the second half of next year.
Although the plasma display panel (PDP) industry experienced a 20% surplus in the first half of this year, strong demand and the recent termination of production at four older fab lines have resulted in a shortage in the second half. In addition, with 2006 PDP supply growing at less than half the rate of 2005 supply, the second half of 2006 will see significant supply concerns in the PDP TV industry, with double-digit shortages possible in the fourth quarter of next year. Slower supply growth will cause shortages to persist and prices to fall more slowly, which will open the door for the LCD TV industry to narrow the price gap and increase its market share, as supply should not be a concern in the LCD TV industry next year.
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