Competition is rising in the flat screen television market for smaller sized TVs. In response, Samsung Electronics says it has released a 32-inch Bordeaux 650, as part of one of the company's core LCD TV lines. Until now the Bordeaux 650 was available only in sizes over 40 inches. In early March, Samsung also released 22-inch and 32-inch Bordeaux 550 models.
Early this month LG Electronics introduced a 32-inch PDP TV (32PG60), its smallest PDP TV yet, and in March the company released a 32-inch model for its line of Scarlet LCD TVs. Other smaller manufacturers like BenQ Korea are preparing to launch or are strengthening marketing for smaller flat panel TVs.
The recent boom for smaller screens is attributed to two reasons -- more people are buying the cheaper smaller units amid the worsening economy, and because of falling prices flat screen TVs have started to replace CRT models. Market researcher DisplaySearch forecasts that in terms of units sold, the global LCD TV market (50.4 percent of the total market) will surpass the CRT TV market (42.9 percent) for the first time this year. Sales of 32-inch PDP TVs which totaled 500,000 last year are also expected to reach 3 million this year and 6 million next year.
Thus manufacturers are cranking up their small TV production. Samsung's LCD division increased LCD panel output by four-fold from 200,000 in last year's first quarter to 960,000 in this year's first quarter. LG Display also boosted production of LCD panels to 940,000 in the first quarter and said it will increase output of 22-inch panels, which double as computer monitors, by investing W1.36 trillion in its Gumi plant in North Gyeongsang Province (US$1=W1,003).
An LG official said if LCD prices continue to fall the market for second units, or bedroom TVs, will quickly shift from CRTs to LCDs, and the company will take swift steps to secure the market lead.
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