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Philips Electronics who are struggling to compete in the Australian market have admitted that they have been churning out “questionable standard” LCD TV panels.

 Philips panels, the key ingredient of their liquid crystal display television set, come from LG.Philips LCD, a joint venture with LG Electronics. “Yes there are back orders due to low production yields. Yield is the issue. It is related to whether or not the panel is what we consider our standard,” a Philips spokesman has said.

Expensive LCD models have the highest profit margins and generate most of the income of consumer electronics. Philips declined to say if the shortfall would impact first quarter earnings, but said supply would meet demand in April.

The shortages apply to several high end Philips LCD models in the 9830 series that come in the sizes 32, 37 and 42 inch. It is not know whether these models are sold in Australia as Philips PR refuse to return calls on the issue.

Television sales generate much of Philips’ consumer electronics sales. The consumer electronics unit generates about one third of the total 30 billion euros a year revenues of the electronics conglomerate who have a reputation for being dood designers but losy marketers of consumer technology products. The Company claims that by April, the 9830 series will start to be replaced by the successor series called 9831 built partly on the same chassis. “We’re very particular about quality. Regrettable as this is, we make sure that products are of the absolute best quality,” the Philips spokesman added.

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