A glut in the supply of flat-screen TVs is forcing prices down with holiday shopping on the horizon.
It’s only the continuation of a long-established trend, CNN Money reported. The average price for a 32-inch LCD has dropped steadily in the past six years, from $1,566 in 2005 to $374 today.
Look at this graph from a story on the CNN Money website.
CNN Money quotes DisplaySearch, which provides market research and information about monitors and displays, as saying that flat-screen prices will be 5 percent lower than they were just a year ago. But the real drop in prices will begin later this month:
“A tailspin will start in October: In the last three months of the year, the firm forecasts that prices will keep falling until they bottom out at 12% below 2009 levels.
“In some blowout sales, the price slash could be even more dramatic.
“On Black Friday, 32-inch LCD TVs will drop to an average price of between $249 and $299, with the best deals as low as $199, according to a prediction from research firm iSuppli. The 32-inch LCD TVs currently sell for $349 to $399, on average, with the cheapest model (Emerson’s LC320EMX) selling for $300.
“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.”
Forecasters say the price drop won’t last. By the end of 2010, demand is likely to be so strong the big suppliers will dry up and prices will begin to rise around the first of 2011.