Although flat panel TV prices have dropped dramatically over the past few years, LCD TV panel prices have been on the rise lately, especially in the 32-inch segment, and with the segment expected to see continued shortages in 2008, competition between LCD and PDP in the market may once again heat up, according to industry sources.
According to Displaybank, prices for 32-inch LCD TVs dropped about 6% from the previous quarter to US$848 in September, but then started rising amid tight supply and strong demand. In November, average prices for the segment were up 1% in North America and Japan, 3.4% in the UK, and 3.5-4% in Taiwan and Korea, according to WitsView Technology. China is the only major market where prices dropped, falling 3.7%, WitsView noted.
LCD TV makers pointed out that panel makers Chunghwa Picture Tubes (CPT) and Chi Mei Optoelectronics (CMO) are already producing fewer 32-inch LCD TV panels. Prices of 32-inch LCD TV panels increased to US$330 in November and are expected to rise to US$340 in the future. Some LCD TV makers have already indicated that system prices are likely to increase in 2008. Moreover, next year, if profits from the sale of monitor and notebook panels are greater profits in the 32-inch LCD TV panel segment, the shortage of 32-inch LCD TV panels will become even more serious, according to the makers.
Although prices for standard (4:3) LCD monitors in the 17- and 19-inch segments were flat in October, the related panel prices increased, WitsView said. Prices of widescreen monitors models rose 1-2% in October amid rising panel prices, according to WitsView.
With some LCD panel makers beginning to operate 8-generation (8G) plants, LCD TV vendors are able to bring stronger competition to PDP TV vendors in the 50-inch segments. However, PDP makers, which in the past had only focused on larger sized segments, have started to produce 32-inch PDP TVs. Therefore, competition between LCD and PDP in a number of TV segments may heat up in 2008, with the technology not being the decisive factor for consumers, but instead the decision to purchase a flat panel TV will come down to quality, brand and price, according to Displaybank.
Article translated by Greg Wu and edited by Michael McManus
