Competition a Catalyst to Plasma Price Cuts

Plasma sets are getting cheaper and cheaper. Pretty soon, the main advantage of LCDs will vanish and both LCDs and Plasmas will be on the same playing field. According to a survey published through a Wall Street Journal article, the average cost of a 50-inch plasma is $300 less than the average cost of a 50-inch LCD.

This was attributed to the technology and improved manufacturing techniques employed by manufacturers of plasma sets. Another factor is the competition itself. Competition between plasma and LCD sets is starting to get very serious that both sides feel the pressure in delivering (complete package and price) the best set to the consumers.

According to another study, last year, North American consumers purchased about 10 million 40- and 50-inch LCD TVs versus about 3.8 million plasma sets of the same sizes. This is indicative of how far behind plasmas are in the competition. With these numbers, both Pioneer and Vizio stopped making plasma TVs this year, leaving only LG, Panasonic, and Samsung in the business. And as the sagging prices suggest, business for plasma display panels hasn’t been good.

For all these reason, competition is the turning point of plasma prices. Last month, Panasonic reduced the list price on its 46-inch plasma models by $200. And today consumers can choose between two 50-inch models that go for a street price of $900. Not bad if you’re in the hunt for a large-screen HDTV.

If the current trend in the technology battle between plasma and LCD continues, plasma displays probably don’t have a long future. But if prices become competitive once more between LCDs and plasmas, who knows where the future of plasmas is gonna end up.