LG, Sharp: LCD Prices to Drop in 2007

Overproduction and cost reductions will cause LCD prices to fall by 20 to 30 percent, according to statements by LG Electronics and Sharp Corp. Thursday. At the IFA Consumer Electronics show in Berlin, head of global marketing for LG’s display division Young Chan Kim told reporters, “Last year we saw about 30 percent of price reductions for plasma and a little bit more for LCD. Next year, in 2007, we expect about the same.”

Sharp President Katsuhiko Machido placed the number closer to 20 percent in an interview with Reuters, adding, “But for full-specification, high-resolution sets -- due to limited supply compared with demand -- we don’t see that big a drop.” He also indicated that the price gap between 42-inch plasma and LCD sets was closing.

Both executives expressed high hopes for their respective companies, with Kim reiterating LG’s goal to be the number one display company by 2007, and Machida declaring, “Our global market share is around 10 percent. We want to move to 15 percent. We’ll be able to achieve 15 after April next year.”