Prices For Flat Panel Televisions Drop Sharply In 2Q 2005

PMA Sell-Through Research Finds Flat Panel TV Prices Plummet as DLP and 3LCD RPTVs Strike Out for Market Share

5-Aug-05

Pacific Media Associates (PMA) reports that the street price for 40î-45î flat panel televisions dropped an average of 14% from 1Q2005 to 2Q2005. Prices for 42î ñ 43î flat panel HDTV plasma televisions saw the largest decline, dropping 17% and average prices for 40î-42î HDTV LCD televisions dropped 14%. From January to June 2005, sales of 40î-45î flat panel televisions increased by 26%. While sales of 40î-45î DLP RPTV sets increased by 65% during the same period, that growth came largely at the expense of 40î-45î 3LCD RPTV sets, with sales dropping by 44%.ìPrices are dropping much more quickly now that micro-display RPTVs are more widely available in the 40î-44î size,î says Rosemary Abowd, the PMA Vice President who directs PMAís research on flat panel displays and rear projection. ìWhile buyers may still be unsure of the total cost of ownership with MD-RPTVs, thatís not stopping them from noticing this value-priced alternative. Our survey shows that overall volumes for RPTVs are down in the second quarter, but their attractive pricing is forcing flat panel prices to decline sharply.îìThere is still a gap in price between RPTVs and high-definition flat panel televisions, but itís getting smaller. A consumer can now purchase a high-definition plasma set for about $3500 and for about $4500 they can get a high-definition LCD television,î adds Abowd.

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