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Prices of LCD Panels to Plummet In 2008

If you were thinking to purchase a LCD in the Q1, think again

Jan 2, 2008 00:51 GMT  ·  By
  

The LCD panels' market has gone through some serious changes over 2007, the most important one being an increasingly visible shift in the customers' choice in the LCD vs. plasma dilemma, with the liquid crystal displays emerging as the favorites. However, it would seem that things are about to get even better, as one of the latest reports regarding the future of this industry indicates that the overall prices of LCD panels will record a sharp decrease in the next few years, up until 2010.

Thus, as Rodney Chan from DigiTimes informs us, the latest Chinese-only report from research company DisplaySearch indicates the fact that the production costs of LCD displays are expected to record a decrease of 10-16% in compound annual growth rate (CAGR) up to 2010, the main reasons for this trend being the lowering of prices for large-size panels, as well as further TV chip integration, outsourcing of TV assembling, improved efficiency for assembling, and lower material costs.

Furthermore, the market research company makes quite a bold prediction: by the 4'th quarter of 2010, 32-inch HD LCD TVs will have seen average production costs lower to sub-US$400, 42-inch full HD models to sub-US$600, and 52-inch full HD ones to sub-US$1,000.

However, DisplaySearch has even more good news in store. The company's analysts predict that the production prices will drop even more in the case of large-sized LCD TVs, as for example 42-, 46-, 47-, 52- and 65-inch versions, reaching a compound annual growth rate decline of up to 20% in 2010. Unfortunately, although most large-sized LCD panels will be cheaper in 2008, the same doesn't apply for 32-inch models, whose "elderly" technology will keep prices at a stable level.

So, as a conclusion, if you haven't purchased an LCD TV set this Christmas, you should wait at least until the second half of 2008, when the respective price drops will be more visible.

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