Flat-screen TV prices Going South Big time
September 26, 2010 Leave a comment
If you plan to buy a flat screen TV, wait a few more months as their prices are diving down big. According to the research firm DisplaySearch, by the end of this month, LCD TV prices will be about 5% lower than they were at the same time last year,. But a tailspin will start in October: In the last three months of the year, the firm forecasts that prices will keep falling until they bottom out at 12% below 2009 levels.
Reason: Simple! Oversupply of LCD TV panels while demand for has been sluggish this year, thanks in part to manufacturers’ decision to hold back on price chops.
The average selling price for LCD TVs even increased in July, as larger TVs and those with Internet and 3-D capabilities were added to the mix.
The report notes that on Black Friday, 32-inch LCD TVs will drop to an average price of between $249 and $299, with the best deals as low as $199, according to a prediction from research firm iSuppli. The 32-inch LCD TVs currently sell for $349 to $399, on average, with the cheapest model (Emerson’s LC320EMX) selling for $300.
The forecasted price plunge stems from an enormous surplus of LCD panels that has accumulated over the first nine months of the year. Shipments of the panels rose to 52 million in the second quarter, but only 38.7 million TVs were actually shipped to retailers, according to iSuppli.
That 36% inventory gap piles on top of a 25% oversupply in the first quarter. Those figures are higher than anything seen in 2009 — which was also an awful year for flat-screen TVs. Sales were were so bad last year that prices fell by as much as 30%, according to DisplaySearch.
Not to mention the poor economy that is also forcing the TV shoppers to become increasingly budget conscious.