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."
Oh, so true. About 6 months ago I got a 73" Mitsubishi HD CRT TV. It's great. Only problem is there's not enough HD programing yet. National Geographic Channel also needs to go HD. Of the HD channels, the most spectacular is the Doscovery HD channel. I wait for it to get dark at night, turn off all the lights, and i'ts just like being at Glacier or Denali national park.
True, true...but it's going to be a cold winter and the heating bills last year were absurd enough. `:o)
I bought a Sharp Aquos 42-inch LCD set. It is completely HD ready and the picture is incredible! I use a Dish Network HD DVR receiver and also got a Panasonic upscaling DVD player.
I will say that buying a HDTV is ten time more complicated than buying a regular television set. There is so much to consider.
How funny! My wife is that way with computers. I was going to get a 2.2 GHz Celeron system with a CD/RW and a vanilla graphics card a few months ago and the wife pitched a 3.06 GHz Pentium with DVD+/-RW/CD-RW with 2 GBs of RAM and a Radeon AGP graphics card...plus a 19" flatscreen monitor.
Did I mention how much I love my wife? :oD
She wasn't able to convince me to go all out and get the 70", though.
Whoa. I can't wrap my brain around having a TV that big. Whew!
Try www.epinion.com (or epinions.com) can't remember which.
I use this site all the time.
Screw the flat panel. Get a projector if you have a room you can darken. The experience CANNOT be compared. The Flat Panel is a BOX. The projector is just plain cool.
I am waiting until Fox News is in HDTV! And then the only advantage would be to see Ann Coulter.
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.
LOL I've been thinkin' HD flat screen wall-mounted for a while, will wait after Christmas.
My last big electronics purchase was a digital video camera. Did about 3-4 hours research online and in magazines before visiting Best Buy, Circuit City etc. to
actually see/hold a few. Found ALL the sales people knew less than I did, and all tried to steer me to higher priced models with features I didn't need. Completely worthless help, and scads of them ( have you seen how many pimply-faced teenagers there are running around Best Buy??!!) plus a lower price, even with shipping, led me to buy online, as I'll always do from now on.
According to Leo Laport (or whatever his name is) and Consumer Reports, plasma fades and looks awful after about 5 years. Anyone know for sure?
So I'm not alone here, eh?
:O(
Basically, yes. They'll lose up to 50% of their brightness.
I'm not surprised prices are coming down for flat panels. Manufacturing competition has heated up. There is also new technology in the wings.
SED (surface-conduction electron-emitter display)
SED is basically CRT technology in a thin, flat panel, scalable to just about any size you'd want, and uses a third less of the power a plasma system uses. Toshiba and Canon formed a joint venture to manufacture the technology.
A 50inch 1080p set is supposed to make its debut this fall.
Expect it to be pricey though.
LOL! I know we went through all that bs to watch Fox News.
The Sony LCDs are nice. I was either going to buy the Sony LCD or the Samsung DLP 50". Both had great pictures, but my research showed the DLP is better in bright rooms and my living room is bright. Got the Samsung 5067W DLP. The picture quality is awesome. It pairs nicely with my Directv sat system, can't wait till football gets here. The NFL Sunday ticket with super fan add-on gives me over 100 HD games this season!!
LOL
well mine is down in the basement and virtually all the light down there is artificial...
SuperFan is a GREAT idea by DirecTV....
mmmm......the foxnews babes in hd.....
We have a Sony Wega 27 inch flat screen CRT which has a beautiful picture, especially with DVDs. If your picture is really squished check your settings because you might have the ultra squish (my term) setting turned on so you have less picture (but great quality) with DVDs.
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