Since it is my turn to write Display Daily today, I can’t resist the temptation to say something about the historic elections that have just transpired here in the US. No matter who you favored, the outcome was indeed astonishing. Barack Obama will be the first black President in US history and his victory has also changed the political landscape in the US.

Chris Chinnock
Senior Analyst and Editor
for Insight Media

Consider some of these factoids:

• Several previous Republican states went Democratic this year

• The Democrats picked up more seat in the Senate and Congress, increasing their majority
• Obama won the under 45 crowd, a demographic that could shape politics for years
• Obama won the under $100K and over $200K income groups, the latter being a Republican stronghold
• Republican turn out was 10% lower than four years ago
• A whopping 60% said the economy was the most important issue, dwarfing the second most important issue (the Iraq war) at 11%. Such dominance is unprecedented.
• Obama won a commanding amount of electoral delegates and lead in the popular vote by around 5M.

This is a significant changing of the guard that will likely have far reaching ramifications for some time. But now that it is over, the tough part begins. Obama needs to unite the nation and start to deal with a host of serious issues. Both candidates promised many reforms that will cost a lot of money. Neither one would have been able to deliver on these promises. With the magnitude of the economic and financial crisis, compromises will have to be made.

How will affect the display industry? It is a too early to know for sure, of course, but the most important factor is consumer buying. The display industry’s fortunes will rise and fall with this gage. And currently, there are plenty of red flags in this arena. Consider these factoids:

• The price of many notebook, monitor and small LCD TV panels are nearing the cost of production — before adding in the cost of depreciation, overhead and any profits.
• To keep factories busy, expect more price cuts — good for consumers, bad for producers.
• LCD makers are delaying or stretching out new fabs and expansions
• Seasonal demand for IT products is weaker than expected
• Black Friday (the day after Thanksgiving) will give a good window into the expectations for the Holiday season — which most think will be dismal
• Capex is being lowered, forecasts are down, profits are declining or negative and consolidation is in the air

So far, the Chinese market seems to be holding up OK, giving hope to those who are well positioned to capitalize on the opportunity. And, there are pockets of opportunity, but these need to be exploited carefully.

"Change is coming," said Obama, but he could have been referring to the display industry too. I think we had better get used to this.