Global LCD Shipments in 1st Half 07 To Rise From 2nd Half 06 –

Shipments of liquid crystal displays used in monitors and televisions are expected to rise in the first half of 2007 from the second half of 2006, defying market expectations, according to an iSuppli.

Typically demand for LCDs tapers off in the first half of the year after a strong selling period during the second half, which spans the holiday shopping season when consumers purchase personal computers and other consumer electronics devices.

"Due to the presently low level of inventories, slow panel supply-expansion plans and the expected strong holiday demand boosted by low system prices, iSuppli is forecasting tight supply will continue through December and expects the first half of 2007 will be better than the second half of 2006," Sweta Dash, director of LCD and projection research, said in the report.

The El Segundo, Calif.-based market researcher forecasts sales of LCDs measuring 10 inches or more diagonally will rise to 154.3 million units in the first half of 2007, up 24% from 124.7 million in the first half of 2006 and 6.3% from an estimated 145.2 million units in the second half of 2006.

"Shipments typically decline in the first half of the year compared to the second half of the previous year, making this a remarkable accomplishment" for LCD makers, said Dash.

Dash also said that high inventory levels for panels that lingered from the first half of 2006 were mostly cleared up by the third quarter.

"Panel suppliers, system manufacturers and channel participants are attempting to hold their inventories to lower-than-usual levels in order to avoid potential problems if holiday demand falls short of expectations," she said.