Enough With the Doom and Gloom-It's An Election Year…

I edited a story yesterday for our mid-month Mobile Display Report, with the headline: "LED Sector Has Weak Q4 Order Visibility" translation: company buyers are reluctant to make commitments on mid-to long-term "buys" because of all the shakiness in world-wide markets. But here are the underlying facts of the LED sector.
Key companies are coming off record quarters. The actual text in the story says, "Driven by demand from handset applications, the LED sector started to see an increase in sales during August. Many players expect their revenues to hit records in September, and October sales to stay strong."
For example, "sources at Everlight Electronics (Taipei, Taiwan, www.everlight.com) said the company's September revenues will hit a record of $32.81M and October revenues will stay at a high level. Everlight pointed out that current order volumes for October are around the same levels as in September and, with additional rush orders, monthly revenues will continue to increase." The company's Q3 revenues are projected to rise to $92.6M, with overall utilization will reach 70% - 80% while utilization rates for handset-use BLUs have surpassed 80%. Profitability for the third quarter will be better than that for the second quarter.
On the equipment supply side for the LED sector, growth in orders has indeed pulled back "as the industry takes a wait and see attitude toward the uncertain economy." But even here delivery of orders for Metal-Organic Chemical Vapor Deposition (MOCVD) equipment is growing. "Taiwan's total MOCVD capacity was expected to increase by 100 units to 300 units in 2008, but now the increase is likely to be only 60 to 70 units, DigiTimes reported.
So the rate of growth in new capital equipment for the LED sector is down, not growth itself. And the reason may not even be related to the bureaucratic meddling with our economy but rather the industry coming off record capex investment in 2007.
"When in Q4'07 we announced record sales, we already pointed out that the market will need a 'digestion phase.' This is where we are now." said Guido Pickert, investor relations manager for Aixtron, which claims to control about 70% of the global market for the MOCVD equipment.
During tough times, it may be easy to simply add fuel to the fire by positioning stories with a doom and gloom attitude. But I'm getting tired of it all. OK, so we've had a "melt-down" and the security of the US banking system is ranked 40th by the World Economic Forum, behind Barbados, Estonia and Namibia. That comes from bureaucrats meddling with the free market, in an attempt to "socialize risk" an act akin to letting the marketing guy run engineering (OK, not quite as bad as that but you get the idea.)
But back here in display land and most industry sectors, we have yet to see two consecutive quarters of negative growth (a recession), let alone anything like a depression. Sure folks are cautious going forward as the headlines and machinations continue to trumpet the gloom and doom perhaps in a self-fulfilling prophecy that seems to come around just about every major election year. So rather than get worked up over all the equity suddenly vaporized from my 401K I'll just borrow from a past president and say, "It's an election year --(stupid)".

Google Cell Phone: It’s the Ads Baby

The pieces are all coming together. Last week rumors abound over a Reuters research company (Anian) report that Google already invested millions of dollars in a Taiwan company to build a Linux based cell phone (dubbed “GPhone”). The story was picked up by the Wall Street Journal, the London Telegraph and worldwide blog sites claim prototypes have already been show to various carriers. All this comes on the heels of Google’s vocal input in getting the FCC to offer open access for a portion of the 700MHz wireless spectrum to be auctioned next year.
At first blush, most consumers don’t make the connection. Why a search engine company would want to get into the cell phone business? Well in my best Austin Powers voice: “It’s the ads baby!” And the ad revenue is nothing to sneeze at.
A recent newsfactor.com article quotes Frost & Sullivan numbers for the mobile advertising in the U.S. alone will generate $2.12B in revenue by 2011 compared to $301M in 2006. And that could be just the tip of the iceberg. The article goes on to state The Shoesteck Group estimates at a whopping $10B globally by 2010, while EJL Wireless Research pegs the worldwide mobile advertising market at $9.5 billion by 2011.
What? You my muse, ads on my cell phone, no way! Yes way, and here’s how. These are not necessarily ads in the traditional TV programming sense but click through ad revenue of the internet ilk. The GPhone is no ordinary phone, but follows in the convergence trend of the ground breaking smart phones including Apple’s iPhone. Like the iPhone, it delivers “mobile internet” putting the internet into the palm of your hand, anywhere, anytime—just like cell phones gave us mobile dial tone 25 years ago.
Oh, there will be traditional advertising too, an article by Pete Barlas last week reported that Google is testing different video ad formats including pre-roll and post-roll video ads that run before and after its popular YouTube spots. They are also looking at in-stream ads than run between segments of a program, much like commercial spots on TV. Google is also testing placing special display ads around videos.
But click-through is still the company’s bread and butter, and this is bound to continue with mobile web access. After all, one of the key selling points of the iPhone is that you get a fully functional web browser, with cool orientation sensing (landscape and portrait) and two-finger zoom to easily read and navigate web content.
Well, what of the entrenched “cellco’s” and how will the 800 pound web gorilla change the landscape in wireless delivery you may ask? Google could upset the apple cart here with a unique new wireless service model based on ad revenue. The company has already said it will bid on wireless spectrum and may be willing to go head-to-head long term. But for now, they need the wireless backbone to deliver content. So don’t look for dramatic change in the way phone services is offered anytime soon.
Make no mistake Google is looking to keep the engine of growth going as the company rides the next wave in digital convergence and mobile web delivery is that wave. The good news is Apple, Google and other digital based companies are finally gaining leverage over the entrenched “cellco’s” forcing movement in ways unthinkable (like open access) just a few years ago. –SS

Kopin's Microdisplay Gives Eyes to "Spy" Video Car

Kopin's Microdisplay Gives Eyes to "Spy" Video Car

Steve Sechrist

November 14, 2006 Last week Kopin Miicrodisplay announced its 300M LV
monochrome active-matrix liquid crystal display is being used in a new
"breakthrough" product: a remote-control video cam mounted on a toy car
from Wild Planet (www.wildplanet.com).

The Spy Video Car comes equipped with an infrared camera attached to its
body and monocular eyewear worn by a user. A camera mounted on the front
of the car sends an image wirelessly to the eyewear, which enables the user
to drive the car in light or darkness up to 75 feet away.

The company said its Spy Video Car allows users to enjoy the "real life"
perspective of driving from inside the car, including night-vision
capabilities. Forget the next iPod or even Zune (sorry, Microsoft), this
application has got to be the coolest thing on the Christmas toy list.

A tiny camera mounted in the car wirelessly sends images to the head- mounted display, putting you in the action with this first-person visual
simulation experience. Embedding a camera/display unit into toys like this
may just be the "killer app" for the head-up display market. Think of the
implications. Radio-controlled cars are a good start. Take one to the
slot-car track and you're driving in the Indy 500. Think about the
possibilities in radio controlled planes and other flying devices - once
transmission distances improve beyond the Spy Car's 75ft limit.

Display development gains have helped drop costs for microdisplays
technology to a point low enough to open up whole new mass markets to this
kind of cool functionality. And the current product is a case in point.
The CyberDisplay 300M LV offers a 300 x 225-pixel display on a tiny 0.16- inch diagonal AMLCD. The car, display and wireless electronics, night- vision camera and power supplies, all packaged and delivered, sell for an
astounding $140 retail.

Bottom line: The mass-market appeal of a popular toy can skyrocket demand
for key components like Kopin's display into the stratosphere. Since Kopin
can't ramp production as easily as, say, the company that makes the "Pet
Rock," Kopin had best prepare for a spike in device demand in case Spy
Video Car takes off this Christmas.
I say, forget the kids, I want to take this thing for a spin. --SS

Note: An expanded version of this story appears in the issue of Insight
Media's Mobile Display Report to be published later this week.

For Sprint $3B x 4G = Triple Play

$3B x 4G = Triple Play

September 12th, 2006

In a bold move to capture the high ground in next generation mobile network deployment, the recently merged Sprint Nextel Corp (Reston, VA; www.sprint.com) announced it plans to develop and deploy the first 4G nationwide broadband mobile network. Based on WiMAX technology, this watershed development will enable one network to deliver voice, video and broadband Internet access.

Steve Sechrist
Senior Analyst and Editor
of Projection Monthly

Sprint has also secured significant industry partnerships with the likes of Intel, Samsung and Motorola, to build the infrastructure needed and to develop handheld chipsets to operate on the network. To deploy the system, Sprint says it will spend over $3B in 2007 and 2008, seeking to reach up to 100M customers. The company may eventually spend $4.5B for the total build-out.

Sprint says it plans to use its extensive 2.5GHz spectrum holdings to deploy the technology, giving the company coverage in over 85% of the US households in the top 100 markets.

Prior to this announcement, Clearwire, backed by wireless pioneer Craig McCaw and receiving support from chipmaker Intel, was the WiMAX front-runner. Some analysts believe the Intel investment in Clearwire precipitated the Sprint move. Until then, the company was in negotiations with Qualcomm over the use of its proprietary Flarion vintage of mobile OFDM (Orthogonal Frequency Division Multiplex Access) technology, developed by Flarion Corp. (Bedminster, N.J) and acquired by Qualcomm last summer.

Our take: The announcement gives a major boost to WiMAX supporters and could be the fly in the ointment for Clearwire’s plans to offer a last mile solution set to break the broadband duopoly of cable and DSL. But, if there is a silver lining for Clearwire it’s the proliferation (and subsequent price reductions) of chips and compatible consumer devices this deal will no doubt stimulate.

Finally, placing WiMAX on the deployment fast track can only be good news for broadband customers looking for an economic alternative to duopoly pricing. –SS

Note: an expanded version of this story will be available in this month’s edition of Insight Media’s Mobile Display Report newsletter.

The Tao of Manufacturing: Sharp’s LCDs Built with Solar Power

The Tao of Manufacturing: Sharp’s LCDs Built with Solar Power

September 19th, 2006

The main headline at Sharp’s press conference last week at CEDIA focused on the fact that the company’s new Gen8 plant will start making 42-, 46- and 52- inch Full-HD (1080p) LCD-TVs in October at plasma-killing prices of $2,400, $3,499 and $4,799 respectively. But Sharp has another card up its sleeve. A brief video presentation revealed the company’s strategic plan to excel in large panel manufacturing - but to do so using the highest eco-tech methods employed to date at its groundbreaking Kameyama No.2 plant.

Steve Sechrist
Senior Analyst and Editor
of Projection Monthly

According to the company, the plant is the most environmentally friendly factory in the world. For example, Sharp employs a world-class solar generation system that produces 5,150 KW of power (enough to power 1,300 average US households). An additional 1,000 KW fuel cell is the largest in Japan and is used exclusively for in-house power. This along with its co-generation system, that supplies electricity and heat (from hot wastewater) cuts CO2 emissions by 40% according to the company web site. Sharp also emphasizes that 100% of its waste water (over 28,000 cubic meters per day) is recycled and even the air conditioning employs a natural cooling system, positioned to harvest the cool winds off Mt. Suzuka to the Northwest of the factory.

The most amazing fact emerged when Sharp CEO and COB, Toshihiko Fujimoto was questioned about the added costs to the panels for all this eco-technology. He said that Sharp built the factory because it is the right thing to do for the environment, but when it all added up the cost delta compared to conventional energy sources was negligible.

Our take: The Sharp Gen8 Aquos TVs can claim both the highest production efficiencies in the industry and the fastest response times at 6- and 4ms. Most importantly, these Aquos sets produced some of the best Full-HD images we’ve seen. So with the new announced pricing, they offer perhaps the best value on the shelf.

The fact that the panels are made at the highest eco-tech factory on the planet is a claim that Sharp can leverage all the way to the bank. Even if a side-by-side comparison with-say the Sony Bravia reveals very close image quality, eco conscious US buyers will have yet one more reason to buy the environmentally friendly Sharp set. Kudos to the Sharp team for putting the environment high on the priority list-showing other manufacturers the way.-SS

ITVN Serves Starz/Encore, Sports and More via Web STB

ITVN Serves Starz/Encore, Sports and More via Web STB

September 26th, 2006

Deep in the recesses of CEDIA in a non-descript 10×10 booth, dwarfed by comparison to its mammoth display technology neighbors, was a company with a big vision. Interactive Television Networks Inc. (Santa Monica, CA www.itvn.com) was going head-to-head against the big boys, no less than network TV, cable and satellite networks by leveraging the power of the internet and their own proprietary set top box to deliver a-la-carte cable programming.

Steve Sechrist
Senior Analyst and Editor
of Projection Monthly

The company offers a monthly subscription service that includes a Set-top-box and upgrades like a Starz / Encore package of films on demand plus the standard 17 Starz / Encore channels, available for $14.95/month. There are also extensive sports offerings from European Setana and other sports channels that feature international football, Rugby and Lacrosse games, a "Silver-screen" network that features classic films on demand, as well as other specialty content including music video on demand, adult content offerings, MP3 digital audio channels and even a karaoke channel.

The service is powered by a home broadband set-top-box delivering video on demand from the ITVN servers based in California. SDTV format is delivered over standard IP today with an eye on empowering technologies to compress DVD and HD quality films on the roadmap (see my June 26 Display Daily on MatrixStream HD over IP solution).

While cable and satellite TV networks are not shaking in their boots just yet over this announcement, Pricewaterhouse Coopers estimates 46.7M current broadband subscribers in the US, and that number is estimated growing to 73.4M by 2010.

The company is targeting mainstream viewers by removing the barriers to ITV delivery. The simple set-top-box offering removes the PC from the living room and opens up the main TV display to the unlimited potential of video on demand TV. This goes beyond time shifting and leverages the power of the internet to provide instant access to a growing body of digital content.

ITVN shows us the technology is ready and with consumers tired of duopolistic pricing from satellite and cable, look for more internet delivery competition to follow in the footsteps of ITVN. –SS

See the expanded version of this article in the October issue of Projection Monthly.

SED Revs Up CEATEC

SED Revs Up CEATEC

October 4th, 2006

If your looking for the biggest buzz at Japan’s CEATEC this year, go no further than the Canon/Toshiba SED booth in Hall 1 at this massive precursor to the January Consumer Electronics Show. Here, the Surface-conduction Electron-emitter Display (SED), which was conspicuously absent from SID and other display technology venues this year, is being shown in a 55-inch model.

Steve Sechrist
Senior Analyst and Editor
of Projection Monthly

Lines begin forming a good 40 minutes to 1 hr. before the closed-door presentation, and that’s the line to get tickets. There is yet another line to see the demonstration.

To my knowledge, no one who has seen the SED technology up front and close denies the display prowess. And the specs support this. The 55-inch model shown publicly for the first time here yesterday includes a 1920 x 1080 display resolution boasting 50,000:1 contrast at 450 cd/m2 brightness at a less than 1ms response time. Yutaka Sakuraba, SEDs deputy senior general manager for product development and design claims true CRT like performance from the flat panel display; something he said no other display technology can even approach.

Possibly true, but the company has yet to demonstrate they can produce these results in mass quantities and perhaps more importantly, at a price point competitive with rival LCD and PDP flat screens. Adding fuel to doubting display analyst crowd is the company’s long delay in bringing the product to market-or even full production.

For his part, Sakuraba said flat panel market conditions, including significant price erosion in the space, forced a re-visit of product development plans including cost-down and ramp models more than once. " It’s been a planning nightmare for the team but we believe we are on track for full production in the 2008 time frame." he said. "We’re looking at the broader view and mass migration to DTV by 2011 when digital TV signals become the standard and all analog goes away." Sakuraba continued.

The company will spend the first half of 2007 perfecting its prototype process in Hitatsuka, Japan where the 55-inch units shown at CEATEC were produced. The company plans to be in serial-production by July-07 with a 55-inch line. Then, it will move to full production at a former Toshiba CRT factory located in Himaji, (Hyogo prefecture) Japan by the beginning of 2008.

Sakuraba emphasized all equipment used to build the new displays in the company’s prototype factory was developed in-house leveraging the technology strengths of both partners. For example, Canon is supplying critical ink-jet technology in applying the palladium-oxide and carbon compound emitter layer. So the company is charged not only with developing the process, but building the tools to manufacture the technology as well.

Make no mistake, what these two companies are attempting is no less than a display technology paradigm shift in the face of LCD and PDP flat panel dominance - the result of billions of R&D and capacity investment dollars and ballooning output fueling accelerated price declines which continually spur demand for these traditional flat panels. But the company is bullish on SED display superiority, pouring development funds and resources into the project. And if the growing crowds here at CEATEC portend the future, the SED image is one certainly worth waiting for. The question is: will this wait ever be rewarded? –SS

Now It’s China’s Turn - Domestic Gen 6 LCD Production Announced

Now It’s China’s Turn - Domestic Gen 6 LCD Production Announced

October 17th, 2006

We picked up a story on the wire service this morning confirming partial reports seen all month of a new LCD plant to be built in China by Shenzhen Julong Opto-Electronics. Details have finally emerged that the plant is to be a Gen 6 facility built to the tune of $2.3B with a targeted capacity of 90K units per month (almost 1.1M panels per year) and scheduled to be in full production by 2008.

Steve Sechrist
Senior Analyst and Editor
of Projection Monthly

This is a big deal on two fronts. One, this is the first Chinese owned Gen6 facility on the mainland, and two, it means that many of the domestic LCD brands can now begin to source larger panels from a domestic source.

Up until now most large panel LCD production in China has been limited to assembly of LCD-TVs from panels made in Taiwan, Korea or Japan. The new Gen 6 investment is in line with China’s push to bring to its shores core high technology production.

The report didn’t disclose if the new Gen 6 plant will be funded by current members of the joint venture company or if outside investment will be needed. Back in March 2006, BOE (short for Beijing Orient Electronics) China’s biggest LCD maker, invested $1M in Shenzhen Julong Opto-Electronics to become the group’s biggest shareholder at 40%. At that point, Shenchao Technology Investment held 20% and four other manufacturers including TCL, Skyworth, Changhong, and Konka, own 10% each. There is also a non-disclosed portion owned by the Shenzhen government.

In 2004 BOE invested in a Gen5 line in China based on advanced fringe field switching (AFFS) technology it acquired from Korea’s Hydis group. The company first licensed AFFS and then went on to purchase Hydis from cash-strapped Hynix Semiconductor in 2003 for $380M, forming a new company, BOE Hydis. The venture has since fallen on hard times and applied for court receivership in Seoul, Korea this past September.

Interestingly, a Korean union group accused BOE last month of trying to steal cutting-edge display technology from its Korean partner Hydis. They claim the Chinese partner did little to ensure the success of the venture and was only interested in a technology transfer of the advanced LCD switching process.

Whatever the outcome of the Korean technology leakage charge, BOE and its partners with the AAFS technology in-hand, will work to develop cutting-edge large LCD panels for the display hungry domestic Chinese market in time for the 2008 Olympics and DTV era beyond.

But the rival manufacturers are far from standing still, and China has a long way to go to catch up. For example, Taiwan’s CMO has announced 8G plans and is busy ramping its 7.5G line as well. The Koreans are playing catch-up with Sharp, working on 8G and Samsung has made some overtures regarding 9G production. We’ve also heard rumors of Sharp getting much more serious about Gen10 while the paint still dries on its new Gen 8 facility (See Display Daily July 20, 2006).

Suffice it to say we are in for some rather large boosts to LCD panel capacity and with China establishing large display production; planners should be taking a hard look at worldwide capacity verses demand numbers. –SS

World Premier of New 3D Display in Denmark

World Premier of New 3D Display in Denmark

October 10th, 2006

We picked up a story on the wire service this morning of a new 3D concept called Cheoptics360 XL that debuted in Copenhagen last Thursday. The company claims their technology gives 3D presentations an "unseen degree of definition and amplitude" stating that when the film is rolling, the image can be seen from all angles by the viewers (see photo).

Steve Sechrist
Senior Analyst and Editor
of Projection Monthly

Based on what the company calls the "Free Format philosophy" meaning free and unframed unlike other 3D displays bounded by an LCD device, for example. The company claims it uses "actual space" as the framework for narration and the video image.

The device is an inverted four-sided pyramid made of transparent materials so the audience can see objects that seem to be freely floating video images and computer graphics, according to a company press release. This is done through surface mirroring and reflections where the pyramid itself is used as a kind of prism, assembling light from four video projections into a solid, dynamic image.

Peter Simonsen of viZoo, the technology creator said, "We simply use physical space to create a three dimensional feeling of reality as though the object was actually present in the space." Simonsen claims the Free Format technology "…blends two universes (virtual and real space) achieving a completely different third effect…we’re borrowing the veracity of the physical world by setting our video pixels up in an actual space." Simonsen said.

In a recent trial run, the company assembled the technology in the window of a dress shop where a "virtual girl" was standing in front of a mirror trying on clothes. Reportedly, such a large crowd gathered that they had to be dispersed by the police.

Our take: Yes, very cool and yet another example / reminder we are living in the 21st century after all. It looks like we are getting ever closer to figuring out how to create the StarTrek holodeck.

Now I can finally interact with 3D avatars, reliving all my favorite episodes. Just don’t loose the phaser, err, remote.

By the way - take a look at our agenda for the 3D Workshop we are holding November 16th in South San Francisco. It will provide an excellent snap shot of the state of 3D displays today - and in the future. –SS

Luminus LEDs Target 1080p DLP-Based Sets

Luminus LEDs Target 1080p DLP-Based Sets

October 24th, 2006

Luminus Devices announced it is shipping a new LED chip set (PhlatLight PT120) optimized for DLP technology, specifically the xHD5 1080p DLP chip used in many high-end MDTVs. The new RGB LED package offers more than 1500 white lumens, suitable for sets up to 62 inches, the company announced.

Steve Sechrist
Senior Analyst and Editor
Projection Monthly

Luminus said one of the biggest advantages of solid-state LED illumination is the ability to cycle at 2.9 kHz, which is 48 times faster than the 60Hz refresh of traditional TV frame rates. This results in stunning motion reproduction and is a good complement to the TI 1080p chip set.

LED offers many advantages as a video light source, including increased color gamut, high reliability, long life (up to 60K hours), instant on, simpler light-engine design that allows for thinner set designs, and the elimination of hazardous materials.

But beyond the technical improvements of this new product, LED illumination offers some compelling upgrade opportunities for existing DLP TV makers. Toshiba, for instance, uses the TI xHD5 chip in four of their nine MD sets. Luminus said the PhlatLight PT120 chipset is now being designed into a number of DLP HDTVs that use this DLP chip, and these sets have screen sizes as large as 62 inches. Several models from various manufacturers will be commercially available in 2007.

While the sets won’t be cheaper than arc-lamp-based MDTVs, the "solid-state" moniker has long been sought by TV makers looking for the "instant-on" experience that solid-state (transistor sets) brought to market in the 1960’s - not to mention the improved lifetime numbers and overall reduced operating costs.

Our take: Brightness and cost have remained the two main hurdles to the adoption of LED illumination. With this announcement from Luminus we may well be on the road to a whole new generation of high-performance LED-based MDTV sets with killer image quality.

Luminus, an MIT spin-off and patent holder of photonic lattice technology, has come a long way in improving LED brightness. As adoption of the technology expands we can look to economies of scale to bring reduced prices that will, in turn, spur demand even further. Perhaps - even in the midst of the flat-panel revolution - there may yet be an MDTV in your future. –SS

Trick or Treat-LCD is on PDP’s Doorstep

The long-awaited nightmare of PDP managers has arrived - and it was announced on Halloween. DisplaySearch said today that for the first time, LCD-TV panel shipments exceeded PDP shipments in the 37-inch-and-above segment in Q3′06.

Steve Sechrist
Senior Analyst and Editor
Projection Monthly

Not that PDP had a bad Q3, mind you. 2.8M units shipped and revenue was at a record high, up 10% sequentially and almost 30% year-on-year, passing the $2B mark for the first time ever, according to DisplaySearch. But all this wasn’t enough to stop the LCD juggernaut fueled by super capacity Gen 7, Gen 7.5 and Gen 8 fabs pumping out large displays in unprecedented quantities that kept the price pressure in high-gear over the quarter and pumped up flat panel demand across the industry.

In fact, the double-digit (17%) sequential growth numbers in PDP sales look anemic by comparison to large LCD panels, which topped the mid-triple digits at a whopping 560% sequential growth in the 40- to 47-inch panel size.

Scratch the surface a bit and you’ll find the devil in the details. While revenue is up, PDP’s unit growth is actually slowing, partly because of the shift toward production of larger (+50-inch) panels. This defensive move is in answer to rival LCD’s 1080p, full-HD push and helps explain LCDs success in the +37-inch category, where PDPs cannot compete on pixel (cell) density.

For PDP makers, the trade-off to building larger panels is reduced unit output as fewer larger panels can be produced per plasma substrate. This is reflected in the Q3 numbers. Third-quarter PDP unit growth was actually the lowest in the past 12 quarters, which saw sequential growth range between 70 to 170%.

It makes sense. Larger PDP panels are selling for more, but in lower quantities. In fact, +50 inch PDP panel output doubled in the past year from 12% to 24%. But unlike LCDs, which are being made in record numbers, PDP’s shift to larger panel sizes has resulted in reduced PDP output, which, in turn, lowered supply pressure on prices. What was a PDP price gap with LCD is narrowing. As prices for large LCD panels dropped to relative parity with PDP in the same size range, consumers opted for the higher-resolution LCD models, in part stimulated by the mantra of “full-HD.”

Here’s our take: Matsushita, LGE and Samsung SDI have invested heavily in ramping production to compete with LCD in the large-display space. Plasma “owned” the large flat-panel market for many years, but it did this without effective competition. Remember, plasma had no flat-panel competition until the recent development of Gen 6 LCD fabs.

So, adding insult to injury, the display gods picked Halloween as the last day plasma could claim king of the big-display hill in the 40-to-49-inch segment. Is this as frightening to PDP planners as a cackling witch on Halloween? Actually, no. People in the industry have seen this coming for months, and PDP demand is projected to grow for years to come. But if anyone is just a little nervous, they, like tonight’s Halloween pranksters, will be able to take off their costumes and masks by tomorrow, and the event will fade with few real consequences on their - or our - daily lives.