May 26 2010
As per the new “Quarterly TV Cost and Price Forecast Model & Report” of DisplaySearch, the average selling prices of LCD TV in 2009 fell twice than that in 2008.
DisplaySearch Report of 2009
The over-supply in Q1'09 and Q4'08 had caused a decrease in the price of the panels, which created the fall in price in 2009. In 2009, the blended ASP of PDP TVs fell 21% and 24% Y/Y for LCD TVs.
In 2009, flat panel televisions’ unit demand was considerably better than at the initial stage of 2009. In the first six months of 2009, the TV brands found it easy to reduce the prices. The product sales in Q2'09 and Q1'09 was affected, but the year’s second half changed completely.
With the sharp slowdown in price erosion of LCD panel, particularly due to the increased demand in Chinese market, the LCD TVs’ average prices will drop slowly in the year 2010. The combination of the costly 3D TVs and LCD TVs that are LED-backlit will equalize the natural price erosion, which leads to the fall of volume weighted average price and blended average price to 4%. LCD TVs with LED-backlit have premiums of 30–50%; however, the premiums will fall because the supply chain brands and matures will bring down the LED margins to speedup the transition away from models of CCFL. By the holiday season of 2010, HD LCD televisions of 32" on an average will reach $300. Participants of supply chain are attempting to move users to profitable sizes, mainly 40"+.
In 2010, PDP TVs’ average prices are expected to fall from 15% to 25%, much slower than that in 2009, however, faster than LCD TV categories that are comparable. By Q2’10, on an average, the entire PDP TVs of 50" and smaller sizes will be under $1000 and larger sizes will be under $2000 and will notice a rise in demand. For the category of PDP TV, 42" HD is a volume driver because of the promotional mark of $500. By the holiday season of 2010, average prices of PDP TVs of 42" HD are expected to fall under $500. Recently, PDP TV of 50" 1080p are acquiring a healthy share because all three leading manufactures are incorporating a diverse 1080p model ranges. For the 3D PDP TV’s roll out of 2009, 50" 1080p will remain the major size.