Samsung Electronics Co Ltd, the world's top flat-screen maker, said on Monday a profit-sapping slide in LCD prices won't reverse until the fourth quarter, dashing hopes for a recovery as soon as next month. Samsung said in January prices for liquid crystal displays (LCD) would fall further in the first quarter after almost halving in the second half of last year, but could recover as early as the second quarter.
LCD prices have tumbled because demand for expensive flat-screen televisions has fallen short of the expectations of manufacturers, who are spending more than $40 billion to ramp up production over the next decade.
"LCD prices won't rebound until the fourth quarter. They will definitely rise by Q4 as demand continues to pick up," Cho Yong-duk, a vice president of Samsung's LCD division, told reporters on the sidelines of a product launch. "The prices are likely to stay stable in Q2 and Q3 after a fall in Q1."
Prices for computer LCDs are likely to recover sooner than those for televisions, said Michael Min, tech analyst at Dongwon Securities.
"We believe Samsung was focusing on price of LCDs for TV when it forecast a recovery in the fourth quarter," said Min. "For prices of LCDs for computer monitors and notebooks, the rebound should come earlier than that."
Shares in Samsung were down 1.37 percent at 503,000 won by 0535 GMT, while shares in top rival LG.Philips fell 3.65 percent to 40,850 won. The broader market was down 0.9 percent.
Samsung also said on Monday it had developed the world's largest LCD panel, an 82-inch (208 cm) screen, topping a 65-inch LCD TV unveiled by Japan's Sharp Corp in October.
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