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LCD TV prices jump in July but will slip in September, iSuppli says

The Average Selling Price (ASP) for LCD TVs rose significantly in July and remained at a higher level in August, according to iSuppli’s TV PriceTrak service.

The main reason for the increase was the introduction of new LCD TVs that are more expensive than older sets. The new LCD TVs demanded a higher price because of the inclusion of enhanced features like LED backlights, an improved viewing experience and support for the full 1080p scan format, according to iSuppli. The ASP was further bolstered by stabilization in the pricing for older-model LCD-TVs in August, ending a period of rapid decline.

For all sizes of LCD TVs sold by premium brands in June, the ASP was $1799. In July, prices increased because of the addition of new models, rising 7.4 percent to reach $1933. In August, brand and retailer promotions on some models and new model introductions continued, keeping prices stable at an average of $1931.

While the price increases have been a boon for LCD TV makers, they are not expected to last long. Prices are expected to begin declining again this month and will continue their slide in the fourth quarter, despite the peak holiday selling season, according to Riddhi Patel, principal analyst for iSuppli’s TV service.

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