Manufacturers are ramping up production of LCD TVs, which are selling so well there's a supply shortage, reports the Wall Street Journal. Profits are at their highest since 2004, but production cutbacks in 2006 left companies unprepared to meet demand. LG Philips reported record quarterly profits last week, at $806 million. Samsung made $974 million.
"Strong demand will likely lead to a supply shortage in 2008," said LG Philips' CEO. An analyst concurred, saying, "I expect the shortages to last until the third quarter of this year." Other analysts warned that an overcorrection may lead to the opposite problem next year. "I'm expecting an oversupply in 2009, but it could come earlier," said one. (More LCD stories.)