Seasonal Booms to Hit LCD TV Market in U.S. in Q4

Taipei, Nov. 11, 2009 (CENS)--With Christmas sales season approaching, the U.S. consumer market for LCD (liquid crystal display) TVs is expected to turn strong in the fourth quarter of this year amid tightened credit and financial turmoil, according to iSuppli, a global market research institute.

The institute indicated that consumer demand for LCD TV will be fueled by the launch of models boasting better functionality and economical prices in the fourth quarter. Especially, 32-inch models will be one of the hottest sellers then, mainly because its unit price has gradually slid to US$299 so far.

In fact, local consumers in the U.S. market are very sensitive to prices, with iSuppli estimating that up to 48.1% of those who purchased LCD TVs in the third quarter of this year were attracted by economical prices. The proportion significantly grew from 39.5% in the second quarter.

Apparently, continuously lowering unit prices has been a trend in the LCD TV market this year, according to iSuppli. For instance, the price of a 46/47-inch model will drop to less than US$1,000 the first time in the fourth quarter, while that of 42-inch model will also slide to only US$639 on average from US$768 a year earlier. More economical prices will drive consumers to replace their existing smaller LCD TVs for bigger ones, like 42-inch models, as a major motive in the future.

In the meantime, Wendell Weeks, chairman of Corning Inc., a globally leading supplier of glass, noted that strong consumer market for LCD TVs has simmered into the fourth quarter thanks to lower retail prices, prompting display panel makers to adjust downward their capacity utilization rates. By doing so, he added, they can keep their inventories profitable and avoid excessive supply of display panels.