Yup. The rumors were all true: record sales... on negative margins. Because it is not difficult to dump product when you are, well, dumping. Case in point is Corning which today preannounced a lowered Q4 outlook. And if anyone should know about the state of the market for the most desired item (after the Apple trinkets of course) namely LCD TVs, it's Corning.
From Citi:
Another Negative Pre-announcement — On Tuesday Corning lowered its Q4 outlook. Despite healthy LCD TV sales, a customer in Korea has reneged on contracted deliveries into year end, resulting in SCP volume growth of +5%-+10% vs. +20% prior; this action is unprecedented according to Corning. In response, Corning is idling ~25% of total capacity (we believe primarily in SCP, where it will take charge). Add'ly, Gorilla now expected to decline -25% q/q vs. prior -15% guide due to softer tablets (we believe weak Android and RIMM tablet sales).
Feeling Blue about Black Friday TV Sales — Investors seemingly cheered aggressive LCD TV promotions and
http://www.zerohedge.com/news/about-those-record-black-friday-sales?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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