TFTs to remain costly till the year-end

New Delhi

Aug 24th, 2007

The approaching Christmas has already started showing its glitter in the
market. As the holiday season is preparing to take off, there has been a
considerable increase in the demand of TFT LCDs and CRTs in Europe, US and China
due to which the global market is facing a crunch in its supply. This has
resulted in the short supply of panels globally and the prices of the products
in the last one-month have increased in the market. This is likely to continue
till the end of the year. LG, Samsung, Viewsonic and Amconics are among the
brands that have increased the prices by four to five percent in the Indian
market. "This is a global phenomena and has affected the prices of TFTs
everywhere. The short supply of panels at the world market has led to the price
hike. Though it has not resulted in the decline in sale of the product but has
squeezed the flow in the market," said R. Manikandan, General Manger, Sales
and Marketing (IT products), LG Electronics.

According to Hari Pandey, Marketing Manager of Samsung India, although the
price has increased and will continue till the year-end but the demand is so
much in the Indian market that there is no question of decline in sale of the
product.

Sanjeev Soni, Country Manager of Amconics commented that this is a global
phenomenon and dealers need not worry on this as it will be in control once the
holiday season sets off.

Although dealers have not faced any discomfort in selling the products in the
market, they are hoping that the prices become stable before customers start
postponing their thought to buy TFTs. "Once the prices have increased, it
will continue at the same rate and there is no scope to get reduced. Till now we
have not faced any problem in selling the products but the prices should remain
constant in near future," said Rajesh Aggarwal, CEO, Micromax Technologies.

According to the market experts, the prices of TFT-LCD and CRTs will increase
nominally in the month of September and in October there will be a jump again.
The prices will then be stable at the same rate in November and December and the
market will observe fall in the prices only in the first quarter of 2008.