Since 2008, 32W has been accounting for the largest ratio with 40% in global LCD TV sales. WitsView expected that sales ratio of 40W and above LCD TV in 2H10 may increase substantially in accordance with the recent panel price quote and the street price trend.

 

In terms of the production cost of LCD TV set, WitsView’s analyst indicated that panel accounted for around 70% in total cost regardless of size. In other words, panel prices practically determined LCD TV prices. Take the price quote of 32W TV panel for example, the decline was merely 3~4% from the beginning of this year. In the same period, 40W TV panel price fell by nearly 10%, along with the record low price quote recently. The price drop contributed the cost cut toward 40W and above LCD TV production, and further to lower the street prices.

 

By regions, the average street price decline of 32W LCD TV reached 7% in North America while it was lower than 5% in other regions like Britain, Japan and China. As for 40W model, price fluctuation in China remained flat between January and July since the initial prices were relatively low; and, the price drop in North American and Japan was close to 20%. In addition, the price gap between 32W and 40W models reduced tremendously by $100 on average within seven months.

 

If TV panel prices continue to fall, 40W and above LCD TV price will gradually drop as well, says WitsView. The price cut of large-sized LCD TV will directly attract the purchase of consumers with limited budget. Moreover, its price gap reduction with 32W encourages buyers to purchase LCD TV in larger sizes. In conclusion, 40W and above LCD TV will certainly expand its market share in the year-end hot season.