Word: flatted
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...Those chunky margins have led just about every big name in electronics to pile into flat screens?especially the production of the glass LCD panel that is the primary, and most expensive, component in an LCD TV. Asian companies in South Korea, Taiwan and Japan dominate this side of the business. Much like semiconductors, LCD panels are manufactured in clean-room factories that require massive investment. Ten new plants costing around $20 billion will start up between now and the end of 2005, increasing the industry's production capacity by 70% next year. Even more are on the drawing board...
...Lofty prices have kept the market for flat-screen TVs small so far. Plasma technology dominates in supersize TVs at 40 in. (100 cm) and larger, but plasma will hold only 2% of the U.S. TV market this year. More consumers buy LCD TVs, which are available in a wider range of sizes, but they still only account for less than 10% of the market. Dropping prices will change that, especially with LCD TVs, which manufacturers are gearing up to churn out the fastest. By 2008, 1 of every 3 TVs sold will be an LCD, according to iSuppli...
...think $1,000 is too much to pay for a TV set, consider yourself spoiled. In the 1950s, when the cathode-ray tube was cutting edge, an average TV cost about $1,000, according to Semenza. Adjusted for inflation, that's $6,700 today?comparable to the most advanced flat-screen TVs. The advent of the flat TV is seen by an electronics industry accustomed to razor-thin margins as a chance to reap some fat profits from a new technology. Japan's Sharp Corp. announced this month that sales of LCD TVs contributed to pushing up profits...
...look at where LCD-TV prices are headed, wander over to the PC side of your neighborhood electronics store and check out the flat computer monitors. You'll probably find that small LCD TVs are marked up 50% or more, compared with monitors of the same size. LCD TVs often have brighter screens and niftier designs that add to the cost of making them, but the real reason the TVs are more expensive is low volume. With fewer TV sets sold, retailers often tack on higher margins. Prices will also be brought down by competition between LCD and plasma screens...
...Lower pricing is only one factor driving consumers toward flat TVs. More and more television programming is offered in high-definition, or HDTV, format, which should boost LCD TV sales. (Traditional TVs can show HDTV programming, but sometimes not as crisply as LCD TVs, which are almost all HDTV ready in larger sizes.) In the not-too-distant future, flat TVs will be hooked up to PCs, which will record movies on a hard-disc drive. And then there's the get-the-neighbors-talking factor. Ritch Wheeler, 33, a sales manager for DaimlerChrysler from Denton, Texas, recently bought...