For LCD makers smaller is more beautiful

By Rhee So-eui - Analysis

TOKYO (Reuters) - Predicting what fickle consumers will buy has never been an exact science.

Liquid crystal display (LCD) makers had predicted shoppers would snap up the biggest flat TVs as prices came down, but are finding that it's the smaller models that are moving faster off the shelves.

TV screens sized 32 inches or smaller and TV-viewing PC monitors are a cheaper way to replace bulky cathode-ray sets for many consumers in emerging markets, such as China, India and Russia, in time for the Beijing Olympic games.

A U.S. economic slowdown has curbed demand for larger, more expensive sets.

Makers had previously forecast premium 40-inch sets would be the main money-spinners and spent heavily in a race to build larger factories suited for bigger panels.

Now, makers with strength in small screens, such as Taiwan's AU Optronics Corp (2409.TW: Quote, Profile, Research), and those with a focus in the Chinese market such as LG Display Co Ltd (034220.KS: Quote, Profile, Research) are in favor.

"As of now, 32-inch is almost one third of the market," Champ Shin, vice president in charge of TV screen sales at LG Display, told the Reuters Global Technology, Media and Telecoms Summit.

"Up to now most LCD makers had focused on large screens only. But the growth rate of larger screens seems to be a bit slow. And there's big demand for ... TVs using monitor panels or smaller TV panels."