Samsung has confirmed that it will 'adjust' production after sales of televisions slumped in recent months.

Television has been a massive growth industry in the past few years, with the inflated world economy pushing up sales, but the credit crunch has hit hard and Samsung has been forced to respond.

"As demand is weakening, we are responding in a flexible manner through output control," James Chung, a company spokesman told Reuters.

Figures

Samsung is the largest producer of LCD panels, but rumours that production will be reduced by as much as five per cent have been downplayed.

The Korean company is only the latest manufacturer to cut production in the financial downturn, with LG – the second biggest LCD producer - already slashing its output ahead of the latest quarterly reports.

Some analysts are suggesting that the average price for LCD panels fell by as much as 20 per cent in the July-September quarter.