Slowdown in LCD TV sales

[limacharliewhiskey]

Don't know if this is indicative of the HDTV market in general, or people are just buying plasma and DLP TVs instead of LCD TVs. Could this possibly mean a slower acceptance of the HD-DVD and/or Blu-Ray formats? We'll see.

http://www.latimes.com/business/prin...es-pe-business

3M Warns of Sales Missing Forecasts
Demand for its optical film used in flat-screen TVs falls short. Its shares plunge 9%.
From Reuters

July 8, 2006

Diversified manufacturer 3M Co. warned Friday that its results would miss expectations because of weaker-than-expected demand for optical film used in flat-screen monitors and TVs, sending its shares down 9%.

Companies from manufacturers to retailers had expected a burst of orders for higher-end flat-panel televisions ahead of the World Cup soccer games, but 3M said demand did not meet those hopes.

The warning was the latest sign of trouble in the liquid crystal display marketplace and pulled down the shares of other players, including Corning Inc. and LG.Philips LCD Co.

3M, also known for its Scotch tape and Post-it notes, said it expected to report second-quarter sales of about $5.7 billion. Analysts had expected the company to report sales of $5.72 billion, according to Reuters Estimates.

The company expects to earn $1.14 to $1.17 a share in the second quarter, including a gain of 8 cents to 10 cents a share from a one-time income tax adjustment.

For the year, 3M said it expected to earn $4.55 to $4.65 a share.

On average, analysts expected the company to report per-share earnings of $1.17 for the quarter and $4.67 for the year. Analysts' estimates did not include the one-time gain, according to Reuters Estimates.

3M said its earnings and revenue projections were a function of lower-than-expected sales in its display and graphics business segment, which makes optical films used in LCD displays.

The company said the whole electronics industry had "overestimated demand for LCD televisions in anticipation of the FIFA World Cup." That resulted in rising inventory levels, especially for desktop monitors, 3M said, and had "significantly impacted" sales of its optical films.

3M said the marketwide weakness in demand was exacerbated internally by higher-than-expected costs as the company ramped up production of the film.

Shares of the St. Paul, Minn.-based company fell $7.29, to $74.10. The 9% drop was the biggest one-day percentage loss since Dec. 17, 1997, when 3M fell 9.6% after a profit warning.

C. Stephen Tusa, an analyst at JPMorgan who raised his recommendation on 3M one day before the company's warning, called the sell-off "overdone" and said the stock was now trading close to its historical lows of 16 times earnings.

[tomdkat]

I'm thinking people are preferring plasma over LCD since they can get 50" plasma HDTVs they can hang on the wall, and they like that.

Peace...

[SilentBob]

Originally Posted by tomdkat

I'm thinking people are preferring plasma over LCD since they can get 50" plasma HDTVs they can hang on the wall, and they like that.

Peace...

Well they can do that and i will enjoy my 50" Hitachi RPLCD HDTV thank you very much. I don't mind a tv with a bit of meat on it

[tomdkat]

Originally Posted by SilentBob

Well they can do that and i will enjoy my 50" Hitachi RPLCD HDTV thank you very much. I don't mind a tv with a bit of meat on it

It's funny you mention this since I had the 'LCD vs Plasma' talk with a friend of mine and he wasn't interested in a RPTV at all. I suspect many new to HDTV are in the same boat in that they are intrigued by the "flat panel" TV concept and like having the ability to hang the set on the wall.

Peace...

[elwood731]

Originally Posted by tomdkat

It's funny you mention this since I had the 'LCD vs Plasma' talk with a friend of mine and he wasn't interested in a RPTV at all. I suspect many new to HDTV are in the same boat in that they are intrigued by the "flat panel" TV concept and like having the ability to hang the set on the wall.

Peace...

I think you're right. Slim TVs are sexy and look like new technology. RPTVs simply look like the same TVs people have had in their homes since the 80s. When it comes to LCD vs. plasma, I think plasma wins out because, again, it sounds like the new, hip technology. What's state of the art? Plasma, of course. Doesn't matter if it's true--that's the perception.

Also, don't plasmas generally have a higher brightness than the other two? I think on a showroom floor brightness is often equated with picture quality.

[tomdkat]

Originally Posted by elwood731

When it comes to LCD vs. plasma, I think plasma wins out because, again, it sounds like the new, hip technology. What's state of the art? Plasma, of course. Doesn't matter if it's true--that's the perception.

Yep, I agree 100%. This is something I had not previously considered but it makes perfect sense and is probably the #1 or #2 attraction to plasma with the other attraction being the ability to hang it on the wall.

Great point, Elwood.

Peace...

[limacharliewhiskey]

I haven't gotten a HD-compatible TV yet, so I'm slowly doing my homework and research on the different styles of TVs, and right now, plasmas are indeed my first choice at the moment. I'm looking into a TV in the 42"-50" size range, and the plasmas seem to be cheaper than the LCDs. I've also been turned off by LCDs because I fear getting that one dead pixel on the screen. I've seen this on some LCD monitors and imagine LCD HDTVs to be just as prone to this problem. I've also read about slower response times to moving images on LCD, but I don't know if that is still an issue in current models.

I probably won't have it mounted on the wall, but the thinness of the flatscreen plasmas seems more appealing than any of the rear projection DLPs or LCDs.

I'm still 6 months to a year away from getting a HDTV, due to both cost and lack of knowledge on differing formats, but I hope to be an expert by the time I'm ready to buy that TV.

[ganthc]

I bought the Sony 42A10 HDTV Grand Wega. I am thoroughly satisfied with the picture quality and the easy of use. It is a slim, rear projection TV so it only weighs like 60lbs, and it fits better on my TV stand then my old Wega CRT TV.

Concerns with Plasma were burn-in issues if you play games. I wouldn't want to have burn in problems on such an expensive item. I know the dead pixel issue is a concern, but if I'm not mistaken, plasmas can also experience dead picture cells and have the same problem as LCD's.