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Prices Dropping on LCD TVs Print E-mail
Friday, 05 August 2005
A study by iSuppli, an electronics research firm, revealed LCD TV prices are dropping. In July prices for lower end 40 to 42-inch panels fell to $950, marking the first time panels of this size have come in at under $1,000. Meanwhile, average prices for 40/42-inch panels dropped to $1,125. This could mean the actual LCD TV sets of the same size could be priced as low as $2,500 by the end of the year. According to iSuppli, panel suppliers are behind the price drop as they increase production of 23, 26, 32, 37 and 40/42-inch screens, hoping to accelerate consumer’s adoption rate for LCD TVs. While prices are expected to decline across all sizes, iSuppli predicts the drop will be more noticeable for 40/42-inch panels because of a joint venture between Samsung and Sony. The companies are starting to produce LCD displays using a cost-cutting seventh generation manufacturing processes ideally suited for 40 and 46-inch panels. Samsung is aggressively pursuing the leadership in LCD panel supply and the standardization of high definition LCD TVs. The company has also begun installing equipment at yet another LCD-manufacturing facility expected to increase production by 45,000 sheets a month when it starts operation in April 2006. Samsung hopes this investment will make LCDs more attractive for consumers, rivaling the more widespread plasma TVs.

By October, iSuppli estimates average prices for LCD panels to fall to $558 and $771 for 32 and 37-inch panels respectively. Shipments are projected to increase by 87 percent, up from 10 million in 2004 to 18.8 million in 2005.


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