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EL SEGUNDO, CA -- LCD-TVs will displace CRTs in three years as the leading type of television manufactured worldwide, rising 74% this year alone, a research firm said today.

iSuppli Corp. raised its forecast for LCD-TV panel production in 2006, citing "dramatic reductions in pricing and increased consumer acceptance." iSuppli boosted its 2006 forecast to 46.7 million units, up from its previous prediction of 41.9 million units.


The firm forecasts LCD-TV panel shipments will rise 74% compared to 2005.

“Increased production capacity from sixth- , seventh- and eighth-generation LCD fabs has led to rising availability and decreasing costs for the types of large-sized panels used in televisions,” said Sweta Dash, director of LCD and projection research for iSuppli.

First-quarter LCD-TV panel shipments increased 7% sequentially, reaching 10.6 million units, iSuppli said. Average selling prices for larger LCD-TV panel sizes (32" and 40/42") fell 17% and 14%, respectively, in May compared to January.

“Although LCD-TV panel demand increased in the first and second quarters due to sales related to the World Cup, shipments fell short of the expectations of some suppliers,” Dash said. “Despite that, the second quarter is expected to bring continued growth for LCD-TV panel makers due to reduced prices and increased adoption among consumers. Shipments will accelerate further in the second half due to these factors.”

Increases in capacity and falling prices for panels are impacting the LCD-TV market itself, causing consumers increasingly to choose LCD-TVs rather than sets based on CRT and other display technologies. LCDs accounted for 17% of television shipments in the first quarter, up from 15% in the fourth quarter, according to iSuppli.

With its rate of adoption accelerating, LCD will become the leading display technology for television by 2009, accounting for 48% of factory shipments. The CRT’s share of the market will decline to 42% that year, marking the first time ever that CRT is not the leading technology for television display. 

By 2010, LCD will account for the majority of television shipments for the first time, with 56% of unit shipments, iSuppli predicts.

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