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News
Plasma HDTV Prices Dropping Faster Than LCD
Thursday, January 31st, 2008 at 3:00 PM - by John Martellaro
While Plasma HDTVs make up only a fraction of overall HDTV shipments, dominated by LCD, their prices are falling faster, according to data from DisplaySearch.
DisplaySearch reported that shipments of Plasma display panels to manufacturers climbed year-over-year by 62 percent and reached 4.4 million units. While the same numbers for LCD were 70 percent growth and 27.9 million units shipped, Plasma prices are falling faster for a given screen size than LCDs.
"Historically, slow capacity expansion and tight supply of large panels supported supplier prices more than usual in 2007," said David Barnes, DisplaySearchs vice president of strategic analysis. "For example, the average unit price of LCD TV panels fell only 6 percent from 2006... DisplaySearch expects supply to remain relatively tight through 1H08, helping suppliers sustain good margins."
Matsushita (Panasonic) the number one supplier of Plasma displays has increased its market share slightly to 37 percent. LGE is second with 28 percent, and Samsung is third with a 25 percent market share.
On the LCD side, Samsung leads with 26 percent market share. LG. Philips is second with 22 percent.
iPO notes that because LCDs are in great demand and hold about 80 percent of the overall HDTV market, its not surprising that manufacturers are able hold the line on price drops and maintain healthy profitability. Plasma displays, which had been counted out at one point, are making a comeback propelled by mature production processes that solve the technical problems of previous generations, a great picture and those dropping prices. Panasonic has said that they are still making good money, despite the lower and lower costs of their Plasma displays.
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