By Kim Yoo-chul
Staff Reporter
LG Display, the world’s No. 2 supplier of liquid crystal display (LCD) panels after Samsung Electronics, has blasted aggressive price cuts by Sony on its LCD TV sets in the key North American market.
``Sony’s price cut is excessive. I hope it will maintain an affordable market share in North America,’’ LG Display Chief Executive Kwon Young-soo told reporters Thursday. His comments were embargoed until Friday.
``Sony will probably change its pricing strategy this month because there is no reason for the Japanese company to sustain the low-pricing tactics,’’ Kwon said, adding Sony’s moves helped the steady demand for flat-screen TV sets in the highly-competitive market despite worsening consumer sentiments spurred by sub-prime fallouts.
In the fourth quarter of last year, Sony’s LCD TV unit share in North America nearly doubled to 21.1 percent thanks to marketing, according to the data from DisplaySearch, a market research firm. Sony now sells a 40-inch level full high-definition LCD TV set for some $1,200 in larger U.S. retail stores.
The trend has caused worries as the company might lose flat-screen orders for the market, in addition to threatening its overseas relations including Vizio.
Despite criticism against Sony, Kwon has clarified that his company has been in detailed talks with Sony and Panasonic to boost a strategic partnership. He declined to elaborate.
``We are considering Sony and Panasonic as our bigger clients in the future because they are good at marketing,’’ he said, adding Philips Electronics’ departure from North America was a push for the company to find other major TV set makers.
Kwon also admitted his company is negotiating the deal, slated for the 2nd quarter with several Taiwanese ODM TV manufacturers including Amtran Technology, and will also start supplying its 37-inch LCD panel to Samsung Electronics during the second quarter.
Unlike increasing market concerns that the global flat-screen industry might face oversupply from 2009 after the ramp-up of new lines operated by major global players, Kwon said a supply glut is likely to be limited as he sees new demand for small-sized panels.
``Demand is strong for under 26-inch LCD TV sets and Asus-branded $300 laptops have been selling well, which I didn’t expect,’’ he said.
As replacement demand for computer panels has been increasing with panel prices for laptop and desktop PCs rising on the occasion of back-to-school seasons, Kwon will meet Dell Chairman Michael Dell in May to discuss ways of supplying the panels in the long-term.
``Dell wants to secure stable procurement channels and I will meet him for further talks,’’ Kwon said.
LG Display will start one or two months earlier than scheduled for the mass production of its new ``eighth-generation’’ production line between January and February 2009.
``I don’t understand why Sharp is trying to produce over 70-inch panels. It is too early to talk about the next-generation line as the market for the 50-inch level hasn’t fully opened yet,’’ he said, emphasizing even Samsung Electronics plans to partly shift its eighth-generation line for computer panels.