Posted on 08/15/2005 11:02:09 AM PDT by nypokerface
SAN FRANCISCO - Prices for flat-panel televisions have finally begun to tumble — by as much as 35 percent in the past year — as soaring demand for the two leading flat-panel technologies, plasma and liquid crystal display, or LCD, attracts a host of new competitors.
Lesser-known brands, such as Westinghouse Electric Co., Regent USA's Maxent, Syntax Corp.'s Olevia and Norcent Micro Inc. are slashing prices to compete against more-established names like Sharp Corp. and Sony Corp., forcing them, in turn, to charge less.
Semiconductors and other TV components also are getting cheaper, and the industry continues to find ways to trim production costs.
Now, a 42-inch liquid crystal model retails for about $4,200 on average, and the same-sized high-definition plasma sells for around $2,900, said Riddhi Patel, senior analyst for iSuppli, a market research firm in El Segundo, Calif.
Still too expensive? Price-conscious consumers shouldn't worry, analysts say, as flat-panel prices have yet to bottom out.
Some major retail chains continue to charge a premium for plasma and liquid crystal sets, pocketing 25 percent profits on larger models, Patel said.
"There is plenty of room for retailers to squeeze more out of their profit margins and attract customers," she said.
Proof that flat-panel TVs is a boon for retailers can be found in their earnings statements. Best Buy Co. saw an 85 percent jump in first-quarter profits due in part to skyrocketing sales of flat-panel televisions, while struggling electronics retailer Circuit City Stores Inc. saw triple-digit increases.
Representatives for Best Buy, Wal-Mart Stores Inc. and Costco Wholesale Corp., did not respond to requests for comment, while Bill Cimino of Circuit City refused to discuss profit margins, though he did say more price reductions are expected.
The price war, meanwhile, is taking a toll on flat-panel manufacturers. Sony blamed increased competition from Asian manufacturers who produce cheaper goods, including flat-panels TVs, when it reduced its full-year forecast by 90 percent. Last month, Sony, Toshiba Corp., and Hitachi Ltd. reported quarterly losses.
Some manufacturers have agreed to share risk and expense. Hitachi and Matsushita Electric Industrial Co., the maker of Panasonic televisions, began jointly making LCD televisions in February, as did Sharp and Fujitsu Ltd.
Despite the competitive environment, the companies continue to invest heavily in flat panels knowing that once the market matures they stand to cash in.
About 20.8 million flat-panel TVs will be sold this year worldwide, almost double the 10.9 million units sold in 2004. Sales next year should rise 47 percent, iSuppli said.
Though CRTs have served consumers well for a half-century, flat panels are appealing because they take less space and can be hung on walls.
Misperception may also play a role.
When it comes to picture, most analysts say CRTs are just as good as flat panels, yet many consumers are under the assumption that flat panels are all high definition and thus offer better picture quality. In retail showrooms, flat panels typically display high-definition digital content, so they look superior to CRTs.
Consumers don't always know that some flat panels can't receive high definition, or that CRTs can be formatted to get such programming.
When it comes to performance among flat-panel makers, paying more doesn't necessarily mean a better picture, said Eric Haruki, an analyst for research firm IDC.
More than 90 percent of the world's LCD panels are supplied by five companies, so top-tier brands and generics often share the same components, according to Haruki.
"Some of these companies buy top-notch components from the big players and rebrand them," Haruki said. "The technology is pretty good across the board."
Greg Gudorf, Sony's vice president of television marketing, insists top-tier manufacturers have an expertise lesser-known brands can't match.
"What is their manufacturing expertise in processing video signals?" Gudorf asked. "That's where Sony's heritage comes in. We know how to make a picture look good."
But James Li, chief executive of Syntax, argues that heritage is meaningless when it comes to new technology.
"We all entered the LCD era on the same playing field," he said. "Everybody is working with the same technology. Consumers have already learned that the brand name is not the single most important factor in their purchase."
There is just as much debate over whether to buy now or wait until prices drop further.
Patel is in the market for a new television, but she is waiting until after holiday shopping peaks. She said retailers are apt to offer their best deals then.
Russ Johnston, senior vice president of marketing for Pioneer Electronics Inc., agrees the cost-conscious can wait.
But for those who want the best TV experience in time for the upcoming football season and baseball playoffs, there's no better time to buy.
"If you look at August through November, those are the best TV months," Johnston said. "Sports fans are going to invite people over and want to show off their new TV. They're done waiting."
Me, I'm waiting for the new SED (Surface Electron emitter Displays) developed by Toshiba and Canon that should be hitting the stores by Christmas or maybe early 2006.
Brightest, highest contrast displays, high resolution with no side viewing issues.
This is a site that has a lot of info on flat screens.
http://www.avsforum.com/avs-vb/forumdisplay.php?f=40
I've been shopping for over a year for a flat screen. Was at a Sears a couple of weekends ago and everyone there was going crazy over the 50" Panasonic plasma, great picture.
The one I was looking at was labeled "New" and not refurbished.
Hmmm, why am I reminded of the Simpsons bit where they wind up in the off-brand electronics store..."I know a genuine Panaphonics when I see it. And look, there's Magnetbox and Sorny!" ;)
I have a 27" diagonal CRT that displays letterbox format on a 22"X8 3/4" portion of my screen; what happened to the 16:9 ratio?
I'm beginning to think this a scheme designed by skinny bald guys with receding chins because I can't see any more of a face than the eyebrows to the dimple.
"No" to the first, and "Sorta" to the part in parenthesis. It depends upon how you treat them. Plasmas have an issue with "burn-in" where they gradually dim in areas where the picture does not change for more than about 15% of the viewing time. LCD screens don't have that problem - though they have their own problems such as stray locked-on pixels. The other major issue with plasmas is their power consumption - the aforementioned 42" TV can be up to around 600W. Other than that, they are beautiful, and quite bright.
I'm not an expert, but here's a link to a forum with lots of experts. Consensus is that they will lose half their brightness over 60,000 hours.
There has been much misinformation about the longevity of today’s plasma TVs. Like all other display devices, there are two parts to a television. The first is the internal electronics. Modern circuit designs are extremely reliable and all televisions, including plasma’s circuits, are designed to provide extremely long life. The second part is the section of the television that produces light.
In plasma, it is the phosphors within the glass panel. Phosphors are used to produce an image in standard picture tube (CRT) televisions as well, and in three-CRT rear projectors.
Television manufacturers base the projected life of all TVs on “half brightness,” meaning the time it takes for the display to create an image that’s only half as bright as when the TV was new. The three-CRT rear projector is generally rated at 15,000 hours until half-brightness. Direct-view CRTs are generally rated to 30,000 hours. Panasonic plasmas have a half brightness rating of 60,000 hours – four times the life of CRT rear projection. This equates to more than twenty-three years at seven hours a day viewing, around the average daily TV viewing time per U.S. household. With its inherent high brightness, a Panasonic plasma will likely retain its image quality for many years.
Say WHAT? I got my first one over 18 months ago for $2,300. These people must be shopping in the wrong places...
Was it a EDTV or true HD with at least 720p? A lot of these high end ones are starting to come out with 1080p and will be at a premium for awhile.
60" widescreen...only $3,800, eh? Hmmmm...
"Oh honeeeeey...can I--"
"NO!"
"Darn it."
Funny thing is, I wanted to go for the 50", but my wife talked me into getting the bigger one.
She wasn't able to convince me to go all out and get the 70", though.
I have noticed wide ranging color, clarity and brightness as well. My personal favorite TV brand is Mitsubishi. Seem to have the best compromise among the competing characteristics for my tastes.
True HD. 480p, 720p, 1080i.
Do you have the source set to 16 X 9 or 4 X 3? If the cabel box or DVD thinks the set is 4 X 3 That will happen
i dont think its moores law
http://www.webopedia.com/TERM/M/Moores_Law.html
The AVS forum is the best site by far. I set up my projector and sound system off that site
True, but it is much closer in spirit too Moore's Law than Murphy's Law.
The underlying truth is that electronics becomes cheaper and higher performance on a fairly short cycle, that is to say: 'things get better', whereas Murphy says; 'things go wrong'...
I'm in the market for a flat panel this year but it's very frustrating. I feel like an idiot trying to read the forums and all the techy stuff.
Then when I visit the store to eyeball these things, the clerks, even at high end stores turn out to be bigger idiots than me.
It is better to ask forgiveness than permission.
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