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The CEO of LG Display has confirmed that they are in talks with Sony to manufacture selected display panels for the Sony Bravia LCD TV’s. The deal if confirmed will result in Sony using Sharp, Samsung, LG and AO Optics in Taiwan to manufacture their Bravia LCD range.
The move by Sony to OEM manufacturing could result in increased prices for the Sony Bravia TV panels as Sharp, Samsung and LG all have their own display manufacturing operations with “preferential” pricing being given to their own panels as opposed to the Sony panel said an analyst from Daishin Securities in Korea.
Last this month Sony is expected to announce billions in losses after the Company confirmed that profits have dived over 90% during the last year. During the past two months Sony has laid off over 10,000 employees including employees in Australia.
“LG Display has offered the Tokyo-based company supplies of 37-, 42- and 47-inch LCD panels,” LG CEO Kwon Young told the Korean Times today.
These are sizes are currently not supplied by S-LCD, the Samsung-Sony joint venture LG executives have confirmed.
“We are waiting for a response from Sony, but there’s no reason for Sony to refuse such a deal,” Kwon added.
On the question of manufacturing oversupply for LCD TV screens Kwon said his company is seeing “little oversupply signs,” because it would be difficult for struggling Taiwanese panel makers to boost their factory utilization rates to 100 percent.
Kwon’s remarks came amid worries over the partnership between Samsung Electronics and Sony.
The Korean Times wrote of Sony “Sony ? once the TV titan but now grappling with falling profits ? has recently vowed to change strategy in receiving TV panels from S-LCD, citing profitability.
Additionally, Samsung recently refused to supply advanced white LED cells to Sony ? a move that market watchers said is aimed at seizing the largest share in the promising global LED TV market”.
LG’s key clients are Apple and Dell.
In other news LG Display reported a $310.7 million operating loss for January-March2009 which analysts have described as being slightly lower than consensus but not strikingly bad. The first quarter could be seen as the bottom for LG Display and the recovery is, I think, coming faster than expected. It will turn back to profit by the second quarter, since LCD TV demand is growing firmly” said Kang Chung Won of Daishin Securities.
