Good news for consumers. Analysts are predicting drastic price drops for HDTV’s this coming holiday season. In 2005 the average price for a 32″ LCD HDTV was $1,556. Today that same TV can be bought for just $374. But prices are going to continue to drop as a glut of new LCD TV’s hits the market place. If analysts are correct, we could see a 32″ LCD HDTV as low as $199 on Black Friday.
According to an article over at CNN Money, it states:
The forecasted price plunge stems from an enormous surplus of LCD panels that has accumulated over the first nine months of the year. Shipments of the panels rose to 52 million in the second quarter, but only 38.7 million TVs were actually shipped to retailers, according to iSuppli.
That 36% inventory gap piles on top of a 25% oversupply in the first quarter. Those figures are higher than anything seen in 2009 — which was also an awful year for flat-screen TVs. Sales were so bad last year that prices fell by as much as 30%, according to DisplaySearch.
Why is the supply chain so overstuffed? Because demand for flat-screen TVs has been sluggish this year, thanks in part to manufacturers’ decision to hold back on price chops. The average selling price for LCD TVs even increased in July, as larger TVs and those with Internet and 3-D capabilities were added to the mix.
“Manufacturers were playing a game of chicken, hoping demand would be there and reluctant to be the first one to let prices fall,” said Paul Gagnon, director of TV research at DisplaySearch. “Only recently did they come to the shocking realization that prices needed to fall. That will have a good impact on holiday sales.”
Like many consumers, flat-screen TV shoppers are becoming increasingly budget-conscious — especially as the economy shows signs of slowing down.
But you might have to act fast:
But consumers should act fast. The supply chain is beginning to correct itself, iSuppli found. Those kinds of recalibrations generally take about three months to be realized at the retail level. That means prices will likely bottom out at the end of this year or the beginning of 2011.
Sounds great to me. I’ve been looking to replace an old tube set in the guest bedroom with a LCD. I’ll be shopping on Black Friday. Of course it will not be at a brick and motor store but online only. 🙂