A considerable decline in LCD panel prices this fall means consumers can expect 42-inch, 1080p HDTVs to weigh in at sub-$400 price points on Black Friday, said research group IHS. Great news for early holiday shoppers, but a persistent drop-off in demand could leave retailers seeing red.
"Slumping demand in Western Europe and North America are primarily to blame for the poor performance of LCD TV panels," said Sweta Dash, senior director for LCD research at IHS. "Given the already faltering economies of those regions and the threat of a double-dip recession looming, global LCD TV shipments continue to suffer, impacting the TV panel market especially hard."
The average price of notebook, monitor and TV panels prices dropped nearly 4 percent in September, noted Dash. However, TV panels were hit hardest by lackluster consumer demand. The researcher revealed a nearly 5 percent slump that month was the largest decline in a year.
While October figures were not divulged, IHS' early analysis revealed similar price reductions. Dash said piddling demand in the West was only part of the problem, citing China as an outlying cause.
"Panel purchases in China are mostly completed by August in anticipation of the country's National Day celebrations in October - a week-long event that normally sees a surge in consumer purchases, including those for televisions," she explained. "The next big splurge by China on LCD TV panels is not expected until the end of the year, timed to coincide with Lunar New Year festivities in late January of 2012."
Two years ago, Black Friday deals boasting $400 or less 32-inch HDTVs were a revelation. Next week, consumers should be able to grab 10 more inches for that same price. (via IHS)
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