Philips Electronics is currently on a downfall when it comes to LCD TV sales. The first quarter of the year is always slow for electronics in general but for this company it can be considered disastrous. Philips dropped 26% in sales in these three months. This is actually three times the overall drop in the market. iSuppli analyst Andrew Muray said in a statement that this poor performance in sales has occurred because of a lack of direct control in supplying LCD devices:

“The company clearly has a close relationship with panel supplier LG.Philips LCD Co. Ltd. — but it doesn’t have total control, making it hard to get the favorable delivery and pricing terms enjoyed by some of its competitors.”

Current No. 1 leader Samsung on the other hand controlled this in production costs and their aggressive marketing campaign made the difference. LCD sales are now expecting to rise again and a general analysis pointed out the fact that LCD TV revenue rose 80% when compared to last year at the same time. Philips will need to work hard to re-gain their status but this does not seem that much possible in the near future.