Abstract
This IDC study expects that LCD panel vendors will expand production of 32in.
"cuts" in 2008, eliminating the previous year shortage that boosted ASPs for
this size category. As such, projected supply of 32in. LCD TVs for the current
year should be healthy, leading to quarter-over-quarter ASP declines and
spurring increased shipments. Moreover, a robust supply (relative to expected
demand) of large format LCDs, compounded by global economic weakness, will
motivate LCD TV brands to cut prices to move boxes out the door. Prices for
larger-sized LCD TVs are thus expected to decline aggressively throughout the
year, ultimately dropping the 52in. category well under the $2,000 price point
by the holiday season.
"The LCD TV power brands are slated to only get bigger in 2008, as Sony,
Samsung, Sharp, and even Vizio will expand product lines to cater to a variety
of buyers in the coming year. Once merely a budget player selling just on
price, Vizio has yet more tricks up its sleeve, and will offer high technology
120Hz TVs at price points hundreds of dollars less than its legacy CE rivals.
As such, we expect the "budget" LCD TV train to continue to chug along mightily
for the short term, but may run out of track near the end of the forecast." -
Eric Haruki, research director, Displays and Projectors Research.