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37-inch LCDs are Winning Marketshare

In May 2005, 37-inch LCD televisions for the first time captured 51 percent share of the market segment that also includes 37-inch HD PDP and 37-inch EDTV PDP products.

Menlo Park, CA–Pacific Media Associates (PMA) reports that in May 2005, 37-inch LCD televisions for the first time captured 51 percent share of the market segment that also includes 37-inch HD PDP and 37-inch EDTV PDP products.

May was not a fluke, as 37-inch LCD increased its share further in June 2005, taking 57 percent of the segment. The increases in market share have been driven by a drop in average street price for 37-inch LCD televisions, placing these products on a virtually equal price footing with 37-inch HD PDP products. Average prices for 37-inch LCD hit a low of $3126 in June 2005, a decline of about 25% from March 2005 when the ASP was $4138. The ASP for 37-inch HD PDP in June 2005 was $2963.

“Contrary to some popular thinking, LCDs cant support a price premium over similarly-sized PDPs,” said Rosemary Abowd, the PMA Vice President who directs PMAs research on flat panel displays and rear projection. “While LCD prices hovered above PDP prices, the market preferred the plasma models. As soon as the price for LCD models matched the PDP prices, LCDs captured a significant portion of the segment.”

“Its likely that you will see few 37-inch PDP products on the market during the 2005 holiday season. Some PDP manufacturers are abandoning the segment, opting to concentrate on 42″ PDP televisions, which are just as efficient to produce and carry a higher price,” added Abowd.
Which technology will win the race? LCD-technology flat panel TVs have replaced plasma-technology TVs in the 32-inch segment and are on their way to doing the same in the 37-inch segment. This should make market watchers and plasma manufacturers worry that the 42-inch segment is also vulnerable. Once the giant LCD fabrication facilities in Asia reach full capacity and can produce 42-inch glass panels considerably more cheaply and in much greater quantity than today, we expect a huge battle between LCD and plasma.”

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