Summary:

The latest issue of Business 2.0 has a story by me and Matt on the LCD oversupply and its impact on say cell phones. I have been following the business closely, and was intrigued to get an update via a Merrill Lynch report. According to ML, […]

The latest issue of Business 2.0 has a story by me and Matt on the LCD oversupply and its impact on say cell phones. I have been following the business closely, and was intrigued to get an update via a Merrill Lynch report. According to ML, the “LCD TV oversupply issue should continue to the end of the year with eight new fabs opening up over the last few months. The extra inventory is concentrated with smaller LCD TVs below 20”, not with monitors. LCD monitor market supply and demand match up well. Manufacturers make better margins on TVs than monitors.” ML expects notebook makers, especially cheap notebook makers who are selling via Wal Mart to absorb some of the excess capacity. Back to school is going to be stronger than most expect. Notebooks, wireless phones, and MP3 players are hot areas according to ML. Indicator of good times: Best Buy has doubled its notebook SKUs from 12 to 24.

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