First-tier LCD TV brand vendors such as Sony and Samsung Electronics have drastically reduced prices for some of their large-size LCD TVs, forcing other vendors to look at plasma display panel (PDP) TVs as a competitive solution.Sony, in order to retain its first place ranking and reach a goal of a 15-18% global market share in 2008, substantially reduced the price of its 40 and 32-inch LCD TVs in May, according to industry sources. In North America, the company’s 32-inch LCD TV is now selling for US$699, while its 40-inch LCD TV is selling for US$1,099.
As a way to combat the price cuts, US-based Vizio launched a 32-inch PDP TV in North America, which is now selling for US$547 at Wal-Mart.
Amtran Technology, the major contract manufacturer of Vizio-branded TVs, stated that the company’s flat-panel TV shipments in the first quarter reached 760,000 units, with 10-15% being for PDP TVs. Vizio’s 32-inch HD PDP TV in North America uses panels from LG Electronics and the TV’s price and design are very competitive and should be able to handle the price pressure from first-tier brand vendors, according to Amtran.
Industry sources stated that the price for a 32-inch PDP panel is cheaper than a 32-inch LCD panel which is why brand vendors were willing to launch 32-inch PDP TVs in North America.
Industry players believe that if Vizio’s sale strategy for 32-inch PDP TVs works, other new or second-tier companies may follow suit and that total shipments of PDP TVs may increase this year.
