Prices Of Flat-Panel Televisions May Have Reached Bottom, Industry Insiders Say

Bargain Hunters Likely to Find Best Prices Now as Demand Starts to Drive Prices of Liquid-Crystal Display TVs Upward in May, Analysts Say

May 14, 2009

For those who are looking to buy a flat-screen TV, now may be the best time to take advantage of low prices, according to people in the industry. Prices of liquid-crystal displays (LCDs) used in TVs and computer monitors plummeted by nearly 50 percent last year as the global economy entered a slump, according to Henry Wang, the head of market research firm Witsview Technology in Taipei. Now prices have stabilized and are likely to start rising later this year, he said. “Customer demand is getting stronger,” Wang said. “We expect price increases to pick up pace in May.” Taiwan LCD makers account for nearly half of the world’s LCD production, and many brands such as Olevia and Vizio, which is 24 percent owned by Taiwan’s Amtran Technology, have taken advantage of manufacturing partnerships to capture large shares of the global market for LCD TVs. Kolin Group of Taiwan owns the Olevia brand. A 32-inch Vizio LCD TV sells for US$427 at Walmart, the world’s largest retail chain, according to the Walmart website. A smaller 26-inch LCD from Vizio sells for US$367, according to the Walmart website. Vizio is the No. 1 brand in the North American market for LCD TVs, leading established consumer electronic brands from Japan and Europe, according to a May report from U.S.-based market research firm DisplaySearch. LCD TV prices have fallen so much that even farmers in China can afford to buy them, according to Witsview’s Henry Wang. Demand from the more than 1.3 billion people in China is one of the factors that is likely to drive prices higher, he said. LCD TVs are replacing older cathode-ray tube (CRT) TVs for a number of reasons. LCDs take up less space than bulky tube TVs, consume less energy and are free of the harmful radiation that is emitted from cathode rays in tube TVs. As a result, the sleek, energy-efficient LCD TVs have been at the top of the wish list for many consumers around the world. Taiwan has rapidly entered the LCD TV business. Two decades ago, Taiwan only had a few companies conducting R&D on LCD production. Today, Taiwan has more than five companies making LCD panels, including AU Optoelectronics Corp., Chi Mei Optoelectronics, Chunghwa Picture Tubes, Hannstar Display Corp. and Innolux Display Corp. Chi Mei and Hannstar have also established the Chimei and Hannspree LCD TV brands. "We are pleased that the demand for LCD products has been better than anticipated,” AU Optronics Chief Financial Officer Andy Yang said in an April 23 statement. Chi Mei won a Taiwan Excellence Silver Award this year for its design of the world’s thinnest 19-inch panel. The 17th annual Taiwan Excellence Awards in April this year honored Taiwan products that embody “innovalue”, or in other words, value that is created from innovation. A panel of international judges with expertise in the four key categories of evaluation for the awards — R&D, design, quality and marketing — selected the award winners. To promote Taiwan’s industry, the government has made the development of branding the key task for raising the competitiveness of Taiwan’s economy. There are two ultimate goals of the Branding Taiwan program. The first is integrating resources to help establish brands and create a favorable environment for development. The second is to help Taiwan enterprises develop brands and increase their value. Taiwan companies are among the world’s innovators who are offering products that save energy, reduce pollution and help keep people fit. Taiwan has some of the world’s largest companies making green products such as bicycles, energy saving lights and solar cells to name a few. The Taiwan government is supporting this effort as part of its goal of sustainable development for businesses.

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