PDP to see a comeback in 2H 2008 amid tight LCD panel supply, 
says   Amtran chairman
Susie Pan, Taipei; Rodney Chan, 
DIGITIMES[Monday 31 December 2007]

PDP TVs stands a good chance of a comeback in the second half of 2008 amid the continued tight supply of LCD panels and increased demand for flat panel displays in North America ahead of the imminent end to analog broadcasting, according to Amtran Technology chairman Alpha Wu.

The scheduled end of analog TV broadcasting in North America in 2009 is expected to spark a wave of replacement demand in the second half of 2008, said Wu, whose Taiwan-based company is the major manufacturer of Vizio-brand flat panel TVs.

With supply of LCD panels remaining tight in 2008, PDP competition will receive a boost not just in the 50-inch-and-above segment, but also among smaller-size TVs, Wu said.

As long as PDP TV vendors can further lower their production costs and retail prices, their products will still have a chance in the 30-inch-and-above market, he said. Many thought that PDP was already dead in the 30-inch class, but the recent shortage in 32-inch LCD panels has seen 32-inch PDP TVs reappear in the market, he noted.

While there are six to eight TV LCD panel suppliers, players in the PDP segment will have a better chance of survival if only two PDP suppliers are left, the Amtran chairman said.

PDP TV vendors are well-prepared for the upcoming comeback, Wu claimed. While players in the LCD segment have long been under pressure from losses and are therefore more aware of the need for cost downs, their competitors from the PDP segment have started losing money only over the past two years, and therefore their cost down efforts have been relatively slower, Wu claimed.

But now the PDP vendors will be more efficient in cutting costs, posing a strong challenge to their LCD competitors, Wu said.

Wu said Amtran is not worried by the LCD panel shortage because PDP is one of the major alternatives for the company. Amtran remains optimistic about its shipments in 2008, as the 1080p segment will have a 50% market share and LCD TV pricing and functionality have reached levels that consumers can accept, he said.(DIGITIMES) 　　　　　　　　
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Amtran chairman Alpha Wu
Photo: CJ Liu, Digitimes