>>When LCD makers are in a price war, then seek every path to reduce component cost, whether component be $30 or $300. <<
Agreed. In fact, whether they are in a price war or not, there is ALWAYS downward price pressure. Which may be another way of saying that they are ALWAYS in a price war in this global marketplace.
>Now, the pressure put on Pixelworks is probably less than the glass makers, but the direction is still down, which is par for the course in chip land. <<
I did not mean to imply there wasn't ANY downward price pressure: Anyone invested in a semiconductor company should be expecting the prices to fall as the volume goes up, especially if there is competition as there obviously is in this space.
My point was that when (whatever the idiot's name I responded to) linked to falling LCD prices, he implied (or rather SHOUTED) that this was bad for PXLW. This simply isn't true. As volume goes up, the per-chip COST falls, allowing PXLW to reduce the chip PRICE which makes the procurement managers at the monitor/TV maker happy.
In the end, PXLW is still competing on price and performance and ALL the chip competitors are playing on a field that is tilted towards lower prices but higher volume.
FWIW, given TI's dominance in front and rear-projection engines (almost half are TI's DLP) I think all of the companies in this no-longer-so-little niche are in danger of TI integrating more image processing in future products and eliminating the need for some of these image processing chips.
But I'm not at all spooked by (whats-his-names) dire predictions based on GOOD news of falling panel prices and growing acceptance of LCD TVs. (In fact, as I read my last two paragraphs I see that falling LCD panel prices is GOOD for PXLW (GNSS, TRID, etc) because it makes LCD more attractive relative to DLP: TI has a built-in competitive advantage in DLP-based products (since they are sole-source supplier of DLP). This TI advantage does not extend to LCD based products which I addressed in my post.