Comments on: Corning Updates LCD Market http://stockmarketbeat.com/blog1/2006/10/26/corning-updates-lcd-market/ Our beat: The stock market. Our job: Beat it. Tue, 03 Jun 2008 15:36:49 -0600 http://wordpress.org/?v=2.8.1 hourly 1 By: Trent http://stockmarketbeat.com/blog1/2006/10/26/corning-updates-lcd-market/comment-page-1/#comment-5304 Trent Sun, 12 Nov 2006 23:32:08 +0000 http://stockmarketbeat.com/blog1/2006/10/26/corning-updates-lcd-market/#comment-5304 Basically it comes down to growth prospects. Unit growth is very good, but unit growth is driven by declining prices, so revenue grows at a slower rate than units. In the PC market, for example, unit growth remains strong but now is generally offset completely by price declines, so revenue is either flat or slightly up/down. The issue with higher penetration is that the higher the current penetration, the sooner unit growth rates will decline to the point that they no longer offset price drops and industry revenues become stagnant. Basically it comes down to growth prospects. Unit growth is very good, but unit growth is driven by declining prices, so revenue grows at a slower rate than units.

In the PC market, for example, unit growth remains strong but now is generally offset completely by price declines, so revenue is either flat or slightly up/down.

The issue with higher penetration is that the higher the current penetration, the sooner unit growth rates will decline to the point that they no longer offset price drops and industry revenues become stagnant.

]]> By: David Park http://stockmarketbeat.com/blog1/2006/10/26/corning-updates-lcd-market/comment-page-1/#comment-5257 David Park Sun, 12 Nov 2006 13:10:06 +0000 http://stockmarketbeat.com/blog1/2006/10/26/corning-updates-lcd-market/#comment-5257 Your comments on LCD TV penetration rate, price decline, and expected decline in revenue were not so logical. I need more clarification on the correlation. Thanks. Your comments on LCD TV penetration rate, price decline, and expected decline in revenue were not so logical. I need more clarification on the correlation. Thanks.

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