Plasma Fights as Sales Slip in 2009

Whoever told VIZIO and Pioneer to leave the Plasma market is a genius. This decision makes sense now as sales of plasma display panels are slipping down 22 percent in the first quarter of 2009. This is a big decrease in sales as compared with the same period last year. From quarter to quarter, demand for plasma screens dropped by 28 percent.

With the on-going economic crisis, the decline in Plasma sales is the latest blow to a business that is already gasping for air and has had its share of ups and downs. Even LG Electronics, one of only three major plasma-makers remaining in the field, is fighting off rumors that it’s getting out of the game.

On the other side of the fence, LCDs are selling better. According to some estimates, manufacturers are selling seven times as many LCD units as plasma displays. This simply means that companies still on the Plasma bandwagon might also close shop soon.

Across the plasma market, Panasonic enjoyed the strongest performance this past quarter, snagging 37 percent of plasma panel shipments worldwide. Samsung came in second with 31 percent, and LG followed with 26 percent.

The best weapon plasma has in its battle against LCD may be size. Plasma displays in diagonal sizes of greater than 50 inches were the only plasmas to see significant growth during the early months of 2009. The larger-size models, analysts say, tend to be where plasma displays offer the most competitive pricing against LCD alternatives.

Industry experts expect to see plasma companies focus on technology improvements to score more sales in coming months. With the LCD market suffering losses of its own right now, it’s far too soon to count plasma out.