Nov. 27--The picture is clear for retailers: high-definition TV is today's hot item and will be for years to come.
Some 25 percent of U.S. households will own an HDTV set by the end of 2006 because of sharp drops in prices caused by a large number of new competitors to the market and the government-mandated transition from analog to digital TV planned for early 2009, according to Jupiter Research, which follows the high-tech industry.
At that time, all broadcasters are required to turn off their traditional analog signals and send only digital transmissions.
Those who do not purchase digital-ready TVs by then will need to get converter boxes that will enable them to get over-the-air programming without signing up for cable or satellite TV. Most of those who are seeking to upgrade their TVs to the superior picture quality of HD sets are scrambling for flat-screen LCD or plasma TVs, where prices have been cut in half since the beginning of last year.
HDTV has significantly higher resolution than traditional television, allowing much more lifelike pictures and digital sound. They also feature wider screens able to capture movie formats, which are cut off by standard sets.
Tweeter Home Entertainment Group, the parent company to the consumer electronics retail chain, said the average selling price for its HDTVs dropped 16 percent for the second quarter in a row, pushing up unit sales for the quarter that ended Sept. 30 by more than 54 percent.
Tweeter and other retailers expect HDTV prices to continue to decrease and for sales to be brisk in 2006 and beyond.
Conn's, the consumer electronics retailer based in Beaumont, is already experiencing heavy sales of plasma and LCD sets, which it attributes to the price drop.
"Everybody's expectations are extremely high," said Tom Miller, district sales manager.
Miller said Conn's expects to sell twice as many flat screen TVs this holiday season as last year.
The trend is expected to continue, according to iSuppli, an electronics marketing and research firm in El Segundo, Calif.
The company said the average price of a 30-inch LCD TV, the most popular size for that format, at the beginning of 2004 was $3,335. That price has plunged this fall to $1,600. The company projects those prices to drop below $1,000 by 2007.
Plasma TVs have a "sweet spot" for sales at the 42-inch size, where the cost of those units fell from $3,457 to $1,944 between 2004 and the fall. The company forecasts the plasma price will hover just above $1,000 in 2007.
But analysts and TV makers believe the market will really begin to shape up in 2006 and 2007, when several new LCD manufacturing facilities come on line that will enable LCDs to be built more cheaply in the 40-inch and above market.
Currently, plasma reigns as king in that large TV market, while LCD rules at 37 inches and below.
Much of the reason has to do with the manufacturing of the thin glass sheet required for LCD TVs, which is presently cost-restrictive at larger sizes.
The new fabrication plants, or "fabs" as they are called by people in the know, will significantly drop the prices of larger LCDs, putting pressure on plasma.
"Where the battleground will really take place is in a couple of years when the new fabs come on line and larger-sized LCDs become less expensive," said Alex Thatcher, Hewlitt-Packard Co.'s digital TV solutions product marketing manager. "Then you'll see a real battle take place between plasma and LCD, and I don't think a winner is assured on either side."
HP sells both LCD and plasma, as well as rear-projection style HDTVs that dominate the 60-inch and larger market.
Most believe the battle will not just leave one technology standing, like the old VHS-beta videotape war that left beta out in the cold.
"There's room in the market for both," Joni Blecher of Jupiter Research said.
All of this raises the question from many consumers: Which one is right for me?
"It really is a personal situation -- the money you're willing to spend, the room that you want to put the TV into," Thatcher said.
"If you're looking for a smaller-sized TV -- 32-inch -- and you like the flat screen, LCD is definitely the way to go. If you want the larger flat TV and you have a room with a lot of windows, plasma can be an excellent selection for you. And if you're a football fanatic and you want the big, big TV, then you've got to go with rear-projection."
Most will argue that HD is the way to go. But the experts caution that not all flat-screen TVs are HD-ready, and consumers should look carefully before they buy.
"You don't want to have to replace your TV in three years," Blecher said, when the government flips the switch from analog to digital.
http://www.redorbit.com/news/technology/314752/plasma_and_lcd_duke_it_out_as_prices_slide/index.html?source=r_technology
Some 25 percent of U.S. households will own an HDTV set by the end of 2006 because of sharp drops in prices caused by a large number of new competitors to the market and the government-mandated transition from analog to digital TV planned for early 2009, according to Jupiter Research, which follows the high-tech industry.
At that time, all broadcasters are required to turn off their traditional analog signals and send only digital transmissions.
Those who do not purchase digital-ready TVs by then will need to get converter boxes that will enable them to get over-the-air programming without signing up for cable or satellite TV. Most of those who are seeking to upgrade their TVs to the superior picture quality of HD sets are scrambling for flat-screen LCD or plasma TVs, where prices have been cut in half since the beginning of last year.
HDTV has significantly higher resolution than traditional television, allowing much more lifelike pictures and digital sound. They also feature wider screens able to capture movie formats, which are cut off by standard sets.
Tweeter Home Entertainment Group, the parent company to the consumer electronics retail chain, said the average selling price for its HDTVs dropped 16 percent for the second quarter in a row, pushing up unit sales for the quarter that ended Sept. 30 by more than 54 percent.
Tweeter and other retailers expect HDTV prices to continue to decrease and for sales to be brisk in 2006 and beyond.
Conn's, the consumer electronics retailer based in Beaumont, is already experiencing heavy sales of plasma and LCD sets, which it attributes to the price drop.
"Everybody's expectations are extremely high," said Tom Miller, district sales manager.
Miller said Conn's expects to sell twice as many flat screen TVs this holiday season as last year.
The trend is expected to continue, according to iSuppli, an electronics marketing and research firm in El Segundo, Calif.
The company said the average price of a 30-inch LCD TV, the most popular size for that format, at the beginning of 2004 was $3,335. That price has plunged this fall to $1,600. The company projects those prices to drop below $1,000 by 2007.
Plasma TVs have a "sweet spot" for sales at the 42-inch size, where the cost of those units fell from $3,457 to $1,944 between 2004 and the fall. The company forecasts the plasma price will hover just above $1,000 in 2007.
But analysts and TV makers believe the market will really begin to shape up in 2006 and 2007, when several new LCD manufacturing facilities come on line that will enable LCDs to be built more cheaply in the 40-inch and above market.
Currently, plasma reigns as king in that large TV market, while LCD rules at 37 inches and below.
Much of the reason has to do with the manufacturing of the thin glass sheet required for LCD TVs, which is presently cost-restrictive at larger sizes.
The new fabrication plants, or "fabs" as they are called by people in the know, will significantly drop the prices of larger LCDs, putting pressure on plasma.
"Where the battleground will really take place is in a couple of years when the new fabs come on line and larger-sized LCDs become less expensive," said Alex Thatcher, Hewlitt-Packard Co.'s digital TV solutions product marketing manager. "Then you'll see a real battle take place between plasma and LCD, and I don't think a winner is assured on either side."
HP sells both LCD and plasma, as well as rear-projection style HDTVs that dominate the 60-inch and larger market.
Most believe the battle will not just leave one technology standing, like the old VHS-beta videotape war that left beta out in the cold.
"There's room in the market for both," Joni Blecher of Jupiter Research said.
All of this raises the question from many consumers: Which one is right for me?
"It really is a personal situation -- the money you're willing to spend, the room that you want to put the TV into," Thatcher said.
"If you're looking for a smaller-sized TV -- 32-inch -- and you like the flat screen, LCD is definitely the way to go. If you want the larger flat TV and you have a room with a lot of windows, plasma can be an excellent selection for you. And if you're a football fanatic and you want the big, big TV, then you've got to go with rear-projection."
Most will argue that HD is the way to go. But the experts caution that not all flat-screen TVs are HD-ready, and consumers should look carefully before they buy.
"You don't want to have to replace your TV in three years," Blecher said, when the government flips the switch from analog to digital.
http://www.redorbit.com/news/technology/314752/plasma_and_lcd_duke_it_out_as_prices_slide/index.html?source=r_technology
