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Local vendors find insufficient market for small LCDs

Posted: 10 Jul 2002 ?? ?Print Version ?Bookmark and Share

Keywords:liquid crystal display? Small-size LCD? flat panel display? module? panel?

An analysis from iSuppli Corp./Stanford Resources reveals that nearly two years after making a strategic shift in focus to small-sized LCDs, flat-panel suppliers in Japan are facing the fact that there is limited opportunity for diminutive displays.

According to iSuppli Corp./Stanford Resources, the market for displays used in cellular phones, PDAs and other consumer electronic equipment requiring small screens has not generated the kind of revenue per product that LCD makers enjoyed in selling large LCDs for desktop and notebook PCs. Meanwhile, the market for larger LCDs has entered a period of undersupply and rising prices, making it more attractive for suppliers again.

The report says many production lines in Japan, most of them for active-matrix displays, were built for, or converted over to, the fabrication of small displays. This move represented an effort to glean some value from a notebook and monitor market that was rapidly becoming commoditized and crowded with new competitors from Taiwan. Small panels, which command a greater price per square inch, were seen as a potential savior for the painfully cyclic LCD market, which was becoming increasingly driven by low prices. The local vendors were also enticed into the small display market by the seemingly imminent rise of the market for 3G cellular phones capable of data access.

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