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LCD battle to intensify: Samsung

South Korea's Samsung Electronics Co said yesterday it expects cut-throat competition in the flat-screen market to intensify in the coming years, with only top-flight producers surviving.

"The sector has enjoyed a 10-year boom thanks to high growth. However, it will face a different environment in the next phase [of development]," Souk Jun-Hyung, an executive vice president, told an analyst meeting.

The liquid crystal displays (LCD) industry requires technical innovation and huge capital to survive, he said.

"Only those with huge funds will be able to increase production," he said, adding Samsung Electronics would step up cost-cutting efforts to beat its competitors.

"The industry is under enormous pressure to reduce cost," Souk said.

On Wednesday Lee Sang-Wan, president of the company's LCD business, predicted that only five big players would survive in the LCD market.

The world's second largest LCD maker after local rival LG.Philips LCD said it would focus on large TV panels.

"Through technical innovation and effective investment, Samsung will build a high [industry entry] barrier that latecomers will not be able to get over," Souk said.

Analysts cautioned that global supply of LCDs would exceed demand next year as LCD makers in South Korea, Japan and Taiwan have ramped up investment in new plants to produce bigger flat panels at cheaper prices.

Separately, Samsung Electronics on Friday also said it has no intention to challenge Apple Computer Inc's hit iTunes music service with one of its own but can help other online song providers improve theirs, an executive said Friday.

"Everyone respects what they've done," David Steel, vice president of Samsung's digital media business, told reporters regarding Apple's iTunes. "They've got a great user interface."

Echoing comments made on Thursday by Choi Gee-sung, president of Samsung's digital media business, Steel said Samsung has no interest in becoming an online music provider itself like Apple.

"We are very interested in how we can improve the customer experience with our products," Steel said. "We don't aspire to be the end-to-end player."

Over the past week, there has been some confusion about Samsung's ambitions in the online business, with South Korean media reporting earlier this week that Choi said Samsung planned an online music service, remarks later confirmed by the company.

Choi on Thursday said there had been "some misunderstanding" of his comments to reporters.

He said Thursday that Samsung wants to work to help providers whose software is harder to use than iTunes to develop platforms that make services easier.
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