LCD glut means HDTV prices to plummet this holiday season

LCD glut means HDTV prices to plummet this holiday season

Summary: If you plan to do some TV shopping during the upcoming holidays, you appear to be in luck. Research firms are predicting that HDTVs prices will drop significantly in the coming weeks, thanks to an oversupply of LCD sets.

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TOPICS: Hardware, Mobility
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If you plan to do some TV shopping during the upcoming holidays, you appear to be in luck. Research firms are predicting that HDTVs prices will drop significantly in the coming weeks, thanks to an oversupply of LCD sets.

DisplaySearch predicts that starting next month, LCD TV prices will be 12 percent lower than they were this time last year. While that might not be as big a plunge as in 2009, when the economy was just emerging from recession, it's notable because manufacturers tried to hold the line on prices earlier this year, even attempting to raise prices in some cases.

That strategy appears to have backfired, as weak consumer demand has led to millions of sets that were produced but never reached retailers. Economics 101 teaches you that when supply is out of whack with demand, you need to slash prices to stimulate buying.

And what better time to do that than Black Friday, the unofficial kickoff to the 2010 holiday shopping season. According to iSuppli, 32-inch LCD HDTVs currently selling for over $300 might plummet $100 lower by the day after Thanksgiving, with certain "doorbusters" going for a mere $199.

But don't snooze. Inventories should be corrected by year's end, says iSuppli, so if you keep waiting and waiting for prices to fall just a little more before buying, you might be too late.

[Via CNNMoney.com]

Topics: Hardware, Mobility

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21 comments
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  • Shucks....

    I just bought a 40" one for the bedroom (LCD TV that is). I got a pretty good deal however, so I am not really complaining. If they get cheap enough, maybe I will put one in the kitchen. :-)

    Actually, Economics 101 teaches you that when the QUANTITY supplied is greater than the QUANTITY demanded, you have to lower price to sell more. We are not shifting the curves, but merely moving along them to reach an equilibrium position. If you did take Econ 101, even a long time ago, you might vaguely remember that.
    Economister
    • But

      @Economister Price is a function of demand (and vice versa, depending if you are the supplier or the consumer). Marginal propensity to consume is impacted by the current economic downturn, meaning that it takes more incentive to convince a consumer to consume. Once the price of the item is set to induce the consumption, the quantity demanded goes up and moves on the curve you are referring to. Remember, the quantity supplied and the quantity demanded is based on a price (the x axis of the graph you are referring to, with quantity on the y axis). So, really, it is the quantity demanded at a given price. Quanity without price is meaningless.
      happyharry_z
      • RE: LCD glut means HDTV prices to plummet this holiday season

        @happyharry_z

        As is price without demand. Just ask folks with large collections of retired Beeny Babies.
        jmiller1978
      • True

        @happyharry_z - his line of thinking is very supply-side centric. Demand-side is an... "entitlement", without thinking of the whole paradigm.

        And thinking of only the supply-side is the very voodoo economics people were warned of, before the charade of a paradigm was put into place. President Lincoln often talked about the value of labor and laborers, and Henry Ford was absolutely spot-on regarding the value of work as well.
        HypnoToad72
    • I wish life was that simple...

      @Economister - It's not just about quantity. If people lack the money to pay, they will not spend. If people do not spend, businesses go under. If businesses go under, the whole economy crawls, halts, and then goes under.

      Not to mention, if it costs more to make than to sell, there is no profit and there is no ROI. Just like when there are no customers to spend, the business also goes under.

      What's that about "Econ 101", again? ;)
      HypnoToad72
    • RE: LCD glut means HDTV prices to plummet this holiday season

      @Economister

      Actually, if you want to get technical, price is determined by marginal supply and marginal demand. That is to say, that a small change in supply or demand can have a big effect on market price. If you took Econ 201, you might remember that.
      jorjitop
      • Warehouses full of stock

        @jorjitop means a slowdown in manufacturing intil the stock begins to clear out. They won't be selling at a loss until storage is greater than markup. Factories won't ramp up until stock is reduced. Result: What bargains we find will be in 2-3 year old models not having the features we're actually looking for.
        Papa_Bill
    • Thank you professor semantics.

      @Economister Pull the rod out of your butt. "Economics 101 teaches you that when supply is out of whack with demand, you need to slash prices to stimulate buying"- this is an accurate statement, assuming one can make the small leap to interpret "out of whack" as meaning "greater". But, you just had to get on your soapbox... feel better?
      ddferrari
  • Advertisement ?

    "And what better time to do that than Black Friday, the unofficial kickoff to the 2010 holiday shopping season."
    Sounds dangerously close to an advertisement. Hope the information is true. May get the economy moving along further.
    jkohut
    • RE: LCD glut means HDTV prices to plummet this holiday season

      @jkohut It might help the Pacific Rim.
      Papa_Bill
  • Already Seeing Price Drop

    Just picked up a 55" LED TV that was $200 less than it was the week before.
    cyberslammer
    • RE: LCD glut means HDTV prices to plummet this holiday season

      @cyberslammer
      This is more likely related to 3D tvs than the LCD oversupply. Either way, good deals are good deals!
      ericesque
  • RE: LCD glut means HDTV prices to plummet this holiday season

    Personally, I'm going to hold out for the LED vs. LCD HDTVs that are now hitting the market. Less energy consumption with LED, therefore more efficient to own over LCD. There's already a 22" Vizio 1080p at the $249 price point at places like Costco and Wal-Mart.
    wspaceport
    • RE: LCD glut means HDTV prices to plummet this holiday season

      @wspaceport The difference between LED and LCD is very noticeable....make sure you get at least 120Hz refresh rate...going to 240 is overkill your eye can't really perceive the difference. My Vizio 55" is incredible for watching football in 1080p.
      cyberslammer
    • RE: LCD glut means HDTV prices to plummet this holiday season

      @wspaceport
      Be careful holding out for LEDs. Sony is replacing its entire LED lineup with 3D models. This means you won't find LEDs from Sony in the near future and 3D prices probably aren't coming down to current LED prices for a while. I expect other companies will follow suit.

      I suggest asking for deals on LEDs. Stores are trying to move them right now to make room for 3D sets. I got my Sony 40" about a month ago for nearly $500 off the regular price.
      ericesque
  • RE: LCD glut means HDTV prices to plummet this holiday season

    Wow, LCDs going cheap this holiday season!? That's great!
    Forgive me if I don't join the rant about Econ101, symantics and anti-myopic views LaughingOutLoud<----just cause I hate LOL
    Remmik
  • Same old sales tactics....

    As with most items that are relatively new, they usually over price them to so-called compensate for the cost of making them....but, in LCD technology, which has been out a long time,, just not in TV viewing,, prices should be lower than what tube baring TVs were. As for LED TVs, they as well follow the same old ways of selling high at first and lowering to actual price levels later. LED tech has been out for a while too, so it SHOULD be lower cost than LCD was at first. Seems, salesmanship never changes, still the same old pattern as ever before.
    dtroyerSMU
  • Will NEVER Own A 3D TV...

    I'm in the small minority that gets absolutely nauseous when watching 3D or even playing a 3D video game...now if they gave out airline bags with the purchase I might reconsider...
    cyberslammer
  • RE: LCD glut means HDTV prices to plummet this holiday season

    I'm getting a plasma. It's a 50PK950 from LG and I got it for cheap at Amazon.com when there are few left available.<br><br>'sides, m'left eye is blind when I was born and I-ain't care for 3D. Getting all that nice features, like THX Bright Room/Cinema and lots of calibrative options, like gamut and RGB color temperature, is a nice compensation compared to 3D technology.<br><br>When it comes to 3D, I have trouble seeing if something pops out of the screen while at the movie theater. I used to sit up very close to get that great movie theater experience. <img border="0" src="http://www.cnet.com/i/mb/emoticons/happy.gif" alt="happy">
    Grayson Peddie
  • RE: LCD glut means HDTV prices to plummet this holiday season

    See, 2010 was a great year for buying an HDTV. The quality of HDTVs have gone way up and the prices have plunged. The only problem I see is that all the cable companies price gouge their customers when it comes to HD programming. That's why I'm proud to call myself a DISH Network customer and employee, the one company that has a great rate for HD programming - free. That's right, DISH has HD Free for Life for qualified customers. Add in the fact that the number and quality of HD channels that DISH has in it's lineup beats out all other providers and it's a shoe in. I love it.
    mike87d