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9/14/2007
06:26 PM
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LCD-TV Prices On The Rise

The major competitive battleground for LCD-TV brands this year is the 40-inch and 42-inch market.

After falling over the last six months, the average selling price for LCD-TVs rose significantly in July and remained at the higher level in August, a market research firm said Friday.

The introduction of more expensive LCD-TVs with better features than older models was the main cause of the price hike, iSuppli said. Stabilization in pricing for older models also contributed to the increase.

For all sizes of premium brand LCD-TVs, the average selling price was $1,933, a 7.4% increase over the June prices of $1,799. In August, prices on average hit $1,931.

ISuppli, however, said the price hike was temporary. "Prices are set to begin declining again in September and will continue to do so in the fourth quarter, even in the peak selling season during the holidays," iSuppli analyst Riddhi Patel said in a statement.

The major competitive battleground for LCD-TV brands this year is the 40-inch and 42-inch market. Prices for most of these models did not change between June and July, but are expected to drop as the end of the year approaches, iSuppli said.

The rivalry between Sony and Samsung Electronics in the 40 to 42-inch market has heated up, with each company selling 15 models of high-end premium LCD-TVs that are priced within $50 and $150 of each other. At the lower end of the market, Sharp, Vizio and Westinghouse are slugging it out. Meanwhile, Philips has cut prices aggressively during the last six months, and has managed to increase its market share of the 40 to 42-inch segment.

"Besides price, the key to success for brands in the 40 to 42-inch space is aggressive marketing," Patel said. "Brands are in a fight to obtain the best shelf space and to get visibility in all sales channels. To gain an edge in these battles, brands must make effective use of marketing."

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