Sharp, LG Warn of TV Glut
Sharp Corp. and LG Electronics Inc. warned that a glut of inventory for flat-panel display televisions will continue to pressure prices during the critical year-end holiday shopping period.
The inventory build-up of liquid crystal display televisions is the result of a surge in production by global TV makers this year following a period of reduced output in the aftermath of the financial crisis, when consumer spending plunged. The flood of new models has heaped additional pressure on TV prices, which routinely experience 20 to 30 percent price declines annually.
The build-up has filtered down the supply chain. The market for large-sized LCD panels, which was experiencing shortages several months ago, has now swung in the opposite direction, forcing panel makers to scale back output and slash prices to clear out inventory.