Competition? Recession? – LCD Prices Drops

It started with Insignia and Vizio, now even established companies are dropping the prices of their LCD sets – and at a faster pace than the value brands. This all means that higher-end brands no longer carry the premium they once did. Attribute this to the continuing economic crisis or to the pressure from competitions such as Vizio and Insignia. But whichever is the case, the consumers are the ultimate winners.

According to studies, a 40- or 42-inch LCD TV by Sony sold for $1487 in October of last year, but this May it was going for $1098–a drop of 35 percent. By contrast, the price of a similar Vizio dropped by only 27 percent, from $1037 to $819.

Now, the price difference between major manufacturers are so slim that consumers will have a hard time selecting a set whenever price is the main deciding factor. Among the major manufacturers, the price difference between the most-expensive and least-expensive sets dropped from 66 percent to 48 percent.

As consumers becomes more comfortable with brands like Vizio, premium competitors are pressured to offer cheaper LCD-TV models. Other than the price, these low-cost sets have great display images that rival the premium companies’ products.

Another thing to look into is the ongoing recession. Of course we all know what that means. It may be this reason or it may be the combination of both – competition and financial woes.

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