Aug 29, 2011 14:50 GMT  ·  By

LG may have launched two new monitors just a short time ago, but the LCD market is, overall, not doing too well, a fact reflected in how the company decided to revise its financial expectations for next year.

Liquid crystal displays are everywhere nowadays, the same way virtual memory server mostly any electronic out there.

Unfortunately, there are less than pleasant traits that LCDs and RAM products share, one of them being marketing performance.

Memory modules and kits have been selling poorly for about a year or more, leading to very low prices as demand refuses to pick up.

Apparently, while not as serious, the situation is similar on the display front, to the point where LG can't afford to be too optimistic about what next year will bring.

This revelation will probably contrast sharply with the more cheerful of recent events, such as AMD's decision of who will be CEO and IBM's ambitious 200,000 HDD project.

Some may have thought, and rightly so, that the 2.9 trillion won spending of 2009 was very low for a company of LG's caliber.

It turns out that the target spendings for 2012 will only barely exceed the 2009 sum.

More specifically, the company changed its budget, which had already been revised, to 3 trillion won, the rough equivalent of $2.8 billion.

In other words, LG will spend 33% less money on operations next year than it intended to until now.

To compound the problem, LG also reduced its capital-spending budget for 2011 about a month ago, from 5.5 trillion won to 4.5 trillion.

Finally, LG will not be building any new panel manufacturing plant in 2012, suggesting that there is already a surplus of panels.

What remains is to see if analysts are proven right in their predictions that demand will continue to stay underwhelming.