LCD Prices Stabilize, Plasma Prices Fall

Price points for LCD TV panels are now stabilizing after steady declines in the past two years, according to industry analyst DisplaySearch, and some LCD models may actually begin to increase slightly in price in order to sooth profit margins that have taken a hit lately in the face of stiff competition, mostly over the 2006 holiday season.
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Price points for LCD TV panels are now stabilizing after steady declines in the past two years, according to industry analyst DisplaySearch, and some LCD models may actually begin to increase slightly in price in order to sooth profit margins that have taken a hit lately in the face of stiff competition, mostly over the 2006 holiday season.

Meanwhile, plasma panel prices are continuing to fall rapidly (nearly twice as much as comparable LCD units, in some cases). Consequently, "Taking into account power supplies for both [technologies] and optical filters for plasma, [price value is] now expected to swing in plasma's favor," according to DisplaySearch.

The analyst's findings appear to be in contrast to recent sales trends which began when LCD sales overtook plasma in late 2004. DisplaySearch had estimated earlier this year that LCD revenues in 2006 were about $22.5 billion--up about 85 percent--compared with $7.2 billion for plasma, for a gain of less than 30 percent, according to BusinessWeek.