William Trent_

Is LCD Market Overcapacity Being Reined In?

The next question, then, is whether you want to bother owning the most profitable company in a highly capital intensive, cyclical and low margin industry (see DELL.)

Your point is well taken that the first to offer a given technology could have advantages. Of course, that assumes that consumers still have money to spend on the highest-end TVs come 2009. If not, rather than making 60" TVs Sharp could use the same 10G plant to make many more 42" TVs - thus further adding to the glut there.

I wholeheartedly disagree, however, with your second paragraph. Overcapacity, anywhere, is <i>always</i&... an industry problem. It may have a greater impact on some players than others, but price wars help no one but consumers.