LCD TVs and computer monitors may feel the impact of the credit crunch this Christmas season, according to new data from market research firm iSuppli.
The LCD industry is the latest sector within the computer and consumer electronics industries to be warned that they face the risk of significant problems as fears over the state of the US sub-prime market impacts global spending power.
It also echoed concerns that component prices may be about to rise and that coupled with falling disposable incomes could hit high-value manufacturers hard.
"While LCD panel suppliers expect prices to increase for the remainder of 2007 due to supply tightness, iSuppli believes that inventory increases will result in softness in panel demand among end-product makers and channel participants, especially in the monitor market," said director of LCD and projection research at iSuppli, Sweta Dash.
"This may affect fourth-quarter pricing of large-size panels. The issue could become more of a problem if consumers stop spending and tighten their purse strings because of the mortgage problems in the fourth quarter."
The report also warned that moves by the television industry to push ‘Full-HD’ screens may mean it is hit harder than most as full impact of the upcoming credit crunch is expected to begin hitting consumer wallets around the time when manufacturers were expecting to see revenues increase.
There was good news for notebook panel makers though, with the report suggesting that Microsoft’s Vista operating system would continue to drive sales of computers through the crunch.