U.S. LCD-TV Prices Edge Up in April Tweet

Prices dip, however, for 3-D and LED-backlit sets.

The average price of LCD-TVs in the United States inched higher in April compared to March, but prices retreated slightly for newer sets that feature LED backlighting and 3-D capability, according to iSuppli Corp.

Given the arrival of more new models on store shelves in April, and because fewer total models were on sale compared to the prior months when brands and retailers focused on clearing inventory, the average price for LCD-TVs rose to $1,089 in April, up 5.4 percent from $1,033 in March.

In comparison, average prices for LED-backlit LCD-TVs fell to $1,830 in April, down 0.8 percent from $1,844 in March. During the same period, prices for 3-D LCD-TVs declined to $3,075, down 4.8 percent from $3,230.

In the case of LED-backlit LCD-TVs, the fall in average prices occurred across all screen sizes, driving rapid growth of the category and spurring more brands to enter the market. In fact, an iSuppli survey showed that consumer purchases of such sets, which make use of light emitting diodes for the backlighting of LCD panels, reached 12 percent of total TV purchases in the first quarter of 2010, compared to just 6 percent in the fourth quarter of 2009.

For 3-D LCD-TVs, the decline in overall average pricing resulted from the introduction of more lower-priced models serving as entry-level 3-D sets. Nonetheless, prices on 3-D LCD-TVs remained approximately $1,000 higher than non-3-D versions that included the same features, a factor that will serve to limit uptake of the sets at least during the initial stages of the product.

With older LCD-TV models moving out of the channel, brands are starting to market new features and technologies on 2010 models, including Internet connectivity. The number of Internet-Enabled LCD-TV models reached 112 in April, up from 98 in March and 54 in February. iSuppli expects IETVs and LED-backlit sets to continue deepening their penetration of the LCD-TV segment, while 3-D TVs will make their way into the mass market during the next few years.

In general, LCD-TVs continue to dominate consumer preferences compared to televisions employing plasma display technology. Nonetheless, vendors have been adding new features to plasma sets, including 3-D capability from Samsung Electronics Co. Ltd. and Panasonic Corp., to match those of LCD televisions. Just the same, the average price of plasma displays—$1,820 in April compared to $1,791 in March—was still considerably less than the average price of LCD-TVs. For instance, the average price of a 50-inch 3-D plasma television was almost half that of a 46-inch 3-D LCD-TV.

Among the various channels where television sets are sold, average LCD-TV prices rose in April across all major retailer types, including club stores, mass merchandisers and consumer electronics stores. However, the greatest price increase occurred among online retailers, which not only offered more promotions on the older models but also carried a large selection of models with newer features and technologies. Some 3-D TVs, for example, appeared on online sites earlier than at brick-and-mortar locations.

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