If you're a Corning
When Best Buy
But what does it mean when we learn that somewhere "midstream" in the LCD glass-to-panel-to-set-to-finished product continuum, things are looking more turbulent?
People who live in LCD glass houses shouldn't stow ... panels
Yesterday we learned that LG Display
Why, one might ask, would LG Display decide to expand capacity in the face of a looming supply glut? It doesn't make sense -- until you consider the context:
- Fact No. 1: Panel supplies may rise in the short term, but as LG Display confides, sales are surging too. In fact, the company predicts sales will be up nearly 50% year over year in 2009.
- Fact No. 2: Much of the sales growth is coming from within China itself -- a market far from saturated. LG Display seems to think this trend has legs, and considering that it will take "at least two to three years" to complete the Guangzhou plant, the impact on near-term panel supplies should be, well -- nonexistant.
Short-term, LG Display's comments don't sound particularly encouraging for Corning. Longer term, however, both LG Display's words and its actions in China suggest that LCD glass demand is only going to rise. And that, friends, is great news for Corning.
Fool contributor Rich Smith does not own shares of any company named above. Best Buy is a Motley Fool Stock Advisor pick. Best Buy, Sears Holdings, and Wal-Mart Stores are Motley Fool Inside Value selections. The Fool owns shares of Best Buy. The Motley Fool has a disclosure policy.