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October 27th, 2005, 15:20 GMT · By Tudor Raiciu

LCD Price Cuts on the Way

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This year, LCD prices roller coasted their way more than ever before and, depending on the size of the screen, monitors were either out of stock or in oversupply.

Earlier this year, Displaysearch announced that, by 2007, the production cost for LCD panels will decrease up to 62%. As component and peripherals are set on a downwards price line there are real chances of having monitors cost as little as $150 for a 17-inch
model.

However, only a few months away, rumors of cutting TFT-LCD monitor prices even more led to a situation where producers were actually selling at production cost, without making any profit. Those who managed to gain something in the end focused more on raising prices for the 17-inch monitors, increase that was sustained from April to June.

Depending on screen size and whether it is an LCD TV or just basic computer LCD monitor, there were great differences in price and availability, no matter the brand of the products. This is why average LCD TV prices went up due to short demand, while 19-inch computer monitors, not as demanded as other screen sizes, bundled in oversupply.

The opening of new plants is leading to industry fears of a significant oversupply next year, with a resultant fall in prices. However, there is still hope for LCD TVs and producers think that because the World Soccer Championship will be broadcast in High Definition, compatible LCD screens will be highly demanded starting with the first half of next year.

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