40-inch LCD TV prices set to slump

THE PRICE OF LCD panels for TVs of between 40 to 42-inch are on the slide, meaning big price drops during the rest of this year.

That's according to market research firm iSuppli, which said that prices have fallen to $950 this month, down 7.5 per cent from the June figure. The price drops are due to increased levels of productions and price competition, the organisation said.

During the third and fourth quarters of this year, that could mean a Yuletide boost in sales, with a 40 or 42-inch TV costing around $2,500.

But it's not just these sizes which are shrinking in price. All LCD TV panels are expected to fall in price during the rest of this year.

Average prices for 30 to 32-inch panels will be around $550 in early October. The panel suppliers, said iSuppli, want more people to buy LCD TVs but the big drop in the larger sizes is because Samsung Electronics has started production at its seventh generation fab, part of a joint venture with Sony.

In 2005, shipments of LCD TVs are likely to soar to 18.8 million units, which is an 87 per cent rise compared to 2004, said iSuppli. µ

L'INQ
iSuppli