LCD maker LG Display has decided to cut its spending for next year as the demand for LCD TVs slows down.
LG Display Chief Executive Officer Kwon Young Soo informed that in the next year, the company will be spending 3 trillion won or $2.8 billion due to the drop in sale of flat screened LCD TVs. The company plans to spend 4 trillion won during the course of this year.
Soo also said that the company was planning not to build new production plants next year, as consumers continue to refrain from buying flat screen 3D and internet-enabled televisions.
Earlier, the company had announced that it was reducing its capital spending budget by almost 1 trillion won.
TV sellers LG Electronics and Sony have reduced their sales forecast for this year owning to a slump in consumer demand.
LG Display doesn’t expect the market to bounce back before early next year and informed that it will continue to reduce production until it reaches normal inventory levels.
“One of the reasons is that in developed markets people have already upgraded to LCD screens from CRT, and have reached the maximum size of screens that is acceptable. The market is now moving to other areas such as South America and there is less money available to be spent there,” Displaysearch panel expert Paul Gray told Tech Eye.