Bigger television sales fall flat of forecast

The World Cup Soccer finals have been an expensive blunder for flat television panel manufacturers.

LG. Phillips, Sharp, and Samsung have all reported that shipments of HDTV and plasma flat panel TVs will miss forecasts, and prices are also dropping much faster than expected too.

Large screen television makers are paying the price for spending more than $10 billion last year to increase production, wagering that the football finals would keep them very busy.

LCD television panel sales were estimated to rise 52 per cent to $17.7 billion, the fastest-growing LCD category, as of two months ago.

South Korea's Samsung, the world's biggest LCD maker, raised its industry shipment forecast about the same time. But now Samsung says World Cup demand has not lived up to expectations.

LCD televisions may still be too expensive for many consumers, as rival technologies such as plasma gennerally sell for much less. The least expensive 42-inch LCD TV at Circuit City's internet site is an LG Electronics model for $2250. Plasma TVs sell for a little more than $1200.

The missed targets by flat panel television makers may also make investors re-examine the outlook given by electronics merchants.