LCD TV prices to drop during the holidays

LCD TV prices to drop during the holidays

Sales of LCD TVs are expected to rebound from weak sales during the first half of the year to meet increased consumer demand during the upcoming holiday season, as retailers plan to cut back on prices, according to industry researcher iSuppli.

The decline in prices is also due to an oversupply of LCD TV units that were left unsold during the first three quarters of the year. About 52 million units were produced but only 40 million were sold in retail stores, iSuppli's data reveals.

Shipments are projected to be 173.3 million TV units in 2010, up 21 percent from 2009.

Sales in emerging markets like China will have an expected 34 percent growth, while North America and Western Europe is expected at 1 percent and 8.9 percent respectively.

Orders were down during the off-season of the first quarter and slow sales continued through the second quarter amid the weak economy.

But iSuppli director of television systems Riddhi Patel says that second-half growth “will strengthen as brands slash prices aggressively on new sets with advanced features.”

Sales are expected to climb at 15 percent for the third quarter and accelerate further to 18 percent in the last quarter because of holiday shopping demand.

LCD TV prices are expected to fall to $249 from $299 with some models selling as low as $199. A 32-inch TV that retailed at $1,566 in 2005 was selling at $511 in 2009 and further dropped to just $347 dollars at current prices, iSuppli said.

Posted by Melanie Mendoza on Sunday September 26 2010, 9:58 AM EDT. All trademarks acknowledged. Filed under Featured News, Shopping. Comments and Trackbacks closed. Follow responses: RSS 2.0