LCD Price Hikes Not Expected to Last Print E-mail
Friday, 14 September 2007 06:23
EL SEGUNDO, CA – After declining or remaining stable for the past six months, the average selling price for LCD-TVs rose significantly in July and remained at a higher level in August. But while the price increases have been a boon for LCD-TV makers, they are not expected to last, according to iSuppli Corp.
 
Driving the uptick in ASPs: the introduction of more expensive LCDs that include LED backlights, improved viewing and support for the full 1080p scan format, says iSuppli.
 
ASPs were bolstered by stabilization in the pricing for older-model LCDs in August, the firm adds.
 
For all sizes of LCDs sold by premium brands in June, the ASP was $1,799. In July, prices rose 7.4%. In August, brand and retailer promotions on some models and new model introductions continued, keeping prices stable at an average of $1,931, according to the research firm.
 
But prices could already be on the downturn.
 
“Prices are set to begin declining again in September and will continue to do so in the fourth quarter, even in the peak selling season during the holidays,” said principal analyst Riddhi Patel.
 
The major competitive battleground for LCD brands this year is the 40/42" market; this product has become the sweet spot for vendors, offering the best combination of pricing and volume, says the firm.
 
Prices for most 40/42" models did not change between June and July, but iSuppli anticipates this scenario will shift with prices declining further as the end of the year approaches.
 
In the 40/42" segment, a rivalry has developed between Sony and Samsung Electronics. At the value end of the market, Sharp’s model is competing against Vizio and Westinghouse. Having taken the market share lead in North America in the second quarter in LCD unit shipments, Vizio represents a significant challenge to more established brands, according to iSuppli. Meanwhile, Philips has cut its prices aggressively during the past six months, and has managed to increase its market share in the 40/42" segment.
 
Last Updated ( Tuesday, 18 September 2007 05:09 )
 

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