LG Sees Growing Market for Small LCD TVs

The HD TV revolution might seem like it's all about big screens, but LG CEO Kwon Young-soo says demand for small-size LCD is strong than expected.

It might seem like the transition from bulky CRTs to sleek flat-screen displays in living rooms around the world is not just about “flat” but also about “huge,” with manufacturers racing to deliver larger and larger displays, presumably in the belief that most consumers want the “big screen” experience akin to a theater.

But apparently plenty of video viewers still want comparatively small screens. The CEO of South Korea’s LG Display Co. Kwon Young-soo says demand for small-screen LCD televisions is stronger than expected, particularly 26-inch and smaller displays. The unanticipated demand has caught the industry a bit by surprise, and may help to ease an anticipated over-supply (and price war) for LCD panels beginning in 2009 as an array of new LCD manufacturing facilities come online.

Kwon made the comments following a a media event covering LG Display Co.’s quarterly financial results.

Some industry watchers characterize demand for small-sized LCD televisions as another manifestation of the “race-to-the-bottom” phenomenon which has also fueled demand for low-cost, small-sized, comparatively underpowered notebook computers like the Asus Eee. Some analysts have argued the consumers how haven’t embraced high-definition video don’t see a need for a larger display, and are perfectly happy to continue watching standard definition content on a thinner panel. Others point to space constraints, noting that, particularly in heavily populated areas, consumers simply may not have the space for a large panel television, or want to re-jigger their living arrangements to make room for one. In a similar vein, some consumers seek out smaller flat-screen displays for use as something other than a primary entertainment device: maybe the small screen television is intended for occasional use in a den or kitchen, where a large screen would be overkill.