Price of LCD TVs Will Drop 12% by Holidays

For those looking to get a flat-screen television before the holidays either as a gift to someone else or as a personal gift, now is the time to get them. There is an unusually large oversupply of LCD TV panels which is pushing the price of one of these flat-screen TVs down just in time for the holiday season.

 

By the end of September, the price of a LCD TV will be down 5% what it was one year ago. However, when October hits, the price is going to enter a tailspin and it is going to drop quickly. It’s expected that by the holidays or soon after, prices will bottom at 12% lower than they were in 2009. In some cases, it could be even more dramatic.

 

According to iSuppli, a research firm, 32-inch LCD TVs will drop to an average price of between $249 and $299 on Black Friday. Currently, the best models sell for $349 to $399.

 

The reason that there is such a decrease in price is because of the surplus of LCD panels. In the first nine months of the year, there have been more LCD panels shipped to warehouses than in comparison to the number shipped to retailers. For example, in the second quarter, 52 million panels were shipped, but only 38.7 million reached retailers. That’s over 13 million panels that were just sitting there.

 

But, the question analysts are wondering is why there is such an oversupply of panels. The reason is because TV makers were firm on not lowering the price of TVs as the demand for them dropped. So, the supply increased because fewer people were able to afford the flat-screen panels. TV makers hoped that the World Cup would increase the sale of TVs, but it didn’t.

 

"Manufacturers were playing a game of chicken, hoping demand would be there and reluctant to be the first one to let prices fall," Paul Gagnon told CNN Money.

 

The market, though, will correct itself. As the big deals hit, more of these TVs will sell and manufacturers are less likely to make more until the supply is corrected. Therefore, prices will most likely bottom out at the end of this year or the very beginning of 2011. After that, they will begin to rise. So, if consumers want to benefit from the decrease in price, it’s important to get it before the New Year.

 

Despite the fact the economy is tight right now, people like to purchase new TVs. Anticipate big rushes for them when big deals—such as Black Friday—are made available.cell phone softwares cell phone cell phones cell phone spyware