The market for big fat LCD TVs is flagging as we turn all Scrooge like and hold tightly onto our purse strings.
And according to a leading financial analyst things won’t be getting any better as consumer spending confidence continues to dip.
According to a survey by WitsView, the MCI index slumped by 132.5 points to 6142.8 points from January 10 to 24.
The company, which is a research division of TrendForce, attributed the slumping market outlook to the LCD panel sector, which it said has struggled firstly due to the adverse weather conditions in the US, Europe and Australia. It added that the retail sales of these were also alot lower than expected over the Christmas season.
An industry leading financial analyst agreed with the findings. However, he warned there will be trouble ahead – well at least for the next six to seven months. Certainly in the UK.
“Consumer spending confidence has dropped rapidly, especially this month,” he told TechEye.
“Figures are low and those who are the more, let’s say “affluent” are holding on to their wares.
“December also saw a slump, which we can contribute to the adverse weather . However, it also seems people were reluctant to spend as much as they have this month as in past years because they wanted to ensure they had enough “padding” for the first month of 2011.
“This mentality will probably continue into the next six to seven months as we continue in the current climate.”
However, it’s not just our miserly tendencies, which are kicking down the LCD market, it’s also the naughtiness of panel makers and manufacturers, which have been fined a total of $892 million and $648.9 million by the US Department of Justice and European Commission respectively for various parts in price fixing
Most recently Samsung, LG, AU Optronics, Chimei Innolux and Chunghwa Picture Tubes were fined by the EU for price fixing. However, Samsung got less of a fine because it grassed up the rest of its technology mates.
Earlier this month a HannStar exec joined others in the clink after he was found guilty by the DoJ for price fixing.