Although LCD TV brands suffered from dramatic price drops last year, sources have indicated the makers will still follow a low-pricing strategy this year with second-tier LCD TV vendors planning to offer 42-inch LCD TVs at US$699 by the end of the year, compared to current prices which are close US$1,000.
Prices for 32-inch LCD TVs from second-tier vendors are also expected to dip to US$299-399 to meet year-end holiday demand, the sources added.
Besides 42- and 32-inch LCD TVs, sales for 37-inch LCD TVs will also pick up in the second half due to attractive pricing. The price gap between 37-inch and 42-inch TVs is around US$200-300, the sources said.
With the price war continuing in the LCD TV market this year, first-tier and second-tier players are expected to find more difficulty generating profits. Fist-tier makers may be forced to place more orders with ODM/OEM makers while second-tier players will need to control production costs more carefully while they attempt to expand market share through price reductions, indicated the sources.
Prices for LCD TVs fell 30-40% sequentially in 2006 resulting in most TV vendors seeing little profits, the sources noted.
Article translated by Emily Chuang and edited by Ricky Morris
