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09:15 Credit crunch may hinder holiday season for LCD TVs and monitors, says iSuppli - DigiTimes

DigiTimes reports the gloom and doom in the housing mkt may have a major impact on consumer purchasing of LCD TVs and computer monitors during the holiday season, according to new data from iSuppli.

Concerns are rising regarding the sub prime mess, the turmoil surrounding the financial mkts and how these issues will impact business and consumer spending in the US.

The credit crunch the US is now facing as a result of rising defaults on home loans may limit consumers' disposable spending during the holiday period of this year, noted iSuppli. "The co believes that inventory increases will result in softness in panel demand among end-product makers and channel participants, especially in the monitor market," said Sweta Dash, director of LCD and projection research at iSuppli. "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."

Overall television prices more than likely will resume their pricing decline in the fourth quarter as OEMs start to boost holiday sales with promotions and special offers. Production of notebook panels may be impacted due to component shortages.