Why Unwanted TVs Mean Cheaper Cell Phones

Om Malik | Wednesday, August 18, 2004 | 1:06 AM PT | 0 comments

Business 2.0: The slow demand for LCD televisions has turned into a boon for small screen devices like handheld computers and gaming devices. This is exact opposite of the situation a few months ago when Nintendo and Handspring, both complained loudly about why LCD shortages were killing them. Since then a lot of new capacity has come online. The new capacity was added because many thought LCD TVs are going to be hot. The new supply is good for cellphone makers who are now becoming the fastest consumer of color LCD screens, a trend this is likely to continue for a long time to come. As a bonus tip, sources say that prices of LCD desktop monitors are going to take a dip this fall, by as much as $50 per 17-inch monitor. PDF coming soon.

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