LG.Philips LCD Co Ltd, the world's number-two flat screen maker, said on June 07, it signed a 5.05 trillion won ($5.03 billion) three-year deal to supply Hewlett-Packard Co with flat panels. Under the contract, LG.Philips will supply flat panels for notebook computers and monitors to HP, the world's second-biggest computer maker, through May 2008.
Analysts say the deal, with annual value equivalent to about 20 percent of LG.Philips' revenues, would help the screen maker compete against bigger rival Samsung Electronics Co Ltd in the market for notebook PCs.
"The deal could be seen as a sign that the LCD industry outlook is improving," said Jeff Kim, analyst at Hyundai Securities. "It's an opportunity for LG.Philips to expand in the notebook PC market. For HP, they should get better terms with LG.Philips than with Samsung."
Shares in Samsung slid 1.5 percent on Tuesday. LG.Philips, with the third-largest market capitalisation on the benchmark Korea Composite Stock Price Index (KOSPI), closed 2.71 percent higher at 53,000 won, outperforming the wider market's 0.53 percent fall.
Officials at both LG.Philips and HP's South Korean operations could not provide details of their current supply arrangements.
LG.Philips said in a statement the deal represented a substantial increase over the existing supply agreement with HP, without elaborating.
Comments
Comments are closed.