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Home arrow Video Savant arrow iSuppli Predicts Recent LCD Panel Price Rise is Short-Lived
iSuppli Predicts Recent LCD Panel Price Rise is Short-Lived Print
Written by Video Savant   
Monday, 17 September 2007

From iSuppli, a global consumer electronics consulting firm:

After declining or remaining stable for the past six months, the Average Selling Price (ASP) for LCD-TVs rose significantly in July and remained at a higher level in August, according to iSuppli Corp.’s TV PriceTrak service.

The increase mainly was due to the introduction of new LCD-TVs that are more expensive than older sets because of their inclusion of enhanced features like Light Emitting Diode (LED) backlights, an improved viewing experience and support for the full 1080-progressive (1080p) scan format. The ASP was further bolstered by stabilization in the pricing for older-model LCD-TVs in August, ending a period of rapid declines.

For all sizes of LCD-TVs sold by premium brands in June, the ASP was $1,799. In July, prices increased because of the addition of new models, rising 7.4 percent to reach $1,933. In August, brand and retailer promotions on some models and new model introductions continued, keeping prices stable at an average of $1,931.

Looking forward, iSuppli forecasts that the recent uptrend in LCD prices is unlikely to continue, with prices beginning a decline later this month that is expected to carry through the end-of-year holiday selling season.

iSuppli says 42-inch panels are the "sweet spot" for vendors and that competition among retailers is at "fever pitch" levels. iSuppli also notes that although Philips has been extremely aggressive on pricing and that Sharp has introduced a value-priced line to compete with the LCD market leader Vizio and upstart player Westinghouse, price alone will not be enough to to hold or grow market share.

The bottom line here is that while LCD flat-panel HDTVs rarely garner picture quality accolades, it's clear they will continue to be the near-term driving force for HDTV pricing, regardless of technology or form factor.

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