14 DAY TRIAL // LG.Philips LCD has slashed prices for its 42-inch LCD panels to more than US$10 lower than that of Samsung's 40-inch panels and US$200 lower than its costs for the segment, said Digitimes quoting the Chinese-language Apple Daily. The move was made to better compete against Samsung Electronics.
The ASP (average selling price) for 40-inch and 42-inch panels stood at $680 in the second half of October, according to WitsView Technology. LG.Philips LCD will also slash prices for its 37-, 42- and 47-inch panels in November, according to the paper, that showed Dell too will switch some orders over to the South-Korean maker next month as long as prices are not raised, while Hewlett-Packard (HP) may follow.
"During the third quarter, our business did not perform at the level we expected, primarily due to higher than anticipated price declines mainly for LCD TVs. Our ability to effectively reduce costs and improve efficiencies will be crucial in restoring profitability as we prepare for what we believe will be a difficult first half of 2007", said the CEO of LG.Philips LCD, Joon Bon Koo.
With prices for 42-inch LCD TVs fallen below that for a 40-inch LCD TVs in the beginning of October, shipments of 42-inch LCD TVs are expected to pick up significantly throughout the year-end. Quotes for Philips-branded 42-inch LCD TVs have dropped to US$1,699 at Costco's website at the beginning of this month, while LG Electronics (LGE) is promoting its 42-inch models at US$1,999 at BestBuy. Meanwhile, Samsung Electronics is promoting its 40-inch models at US$1,799 at BestBuy, while Sony's Bravia-branded 40-inch models are priced at US$1,899 on Costco's website, showed FPDisplay.