With strong TV sales during China's National Day holidays providing a more positive outlook for the rest the of the year in both the US and Europe, first-tier vendors have launched sales promotions in North America for the upcoming year-end holiday season.
Prices for Samsung Electronics' 32-inch LCD TV and 40-inch LED-backlit TV reportedly have dropped to US$399 and under US$1,000, respectively.
LCD TV vendors indicated that sales in Europe and North America was flat in the first half of 2010 due to overall weak economies such as slower growth of GDP in the US, high unemployment rates, the debt crisis in Europe and fluctuating currency exchange rates, and further caused the sales of LCD TVs to be lower than expected. LCD TV shipments in North America in the second quarter of 2010 dropped 3% compared to the second quarter of 2009, and demand for high-end products was also lower than expected despite fast dropping LCD TV prices.
With the global LCD TV market remaining weak for quite a long time, LCD TV vendors believe that demand will boom during the year-end holiday season. Although concerns about market confidence remains, the strong sales during the National Day holidays in China is expected to provide some confidence regarding market demand for the year-end holiday sales in the North America market, as well as a positive out look for sales at the end of 2010.
Based on information from the website of US-based retail stores such as Best Buy and Wal-Mart, although the traditional peak season has not arrived, prices for mainstream products are dropping fast. The price for a 32-inch LCD TV during year-end in 2009 was US$399, but current prices of Samsung and Sony's 720p 32-inch HD LCD TVs have already dropped to US$399, down from US$445 based on pricing data on Best Buy's website. Prices for first-tier 40-inch LCD TVs cost about US$700 at the end of 2009, while the current price of Sony's 40-inch 1080p LCD TV has dropped to US$629. LED-backlit TV prices are also dropping, including a 40-inch model from Samsung which has dropped to US$999.
On Wal-Mart's website, the price of Vizio's 32-inch 720p LCD TV had dropped to US$358, and US$548 for 42-inch models. The LCD TV price war is intense, and price-cut promotions in retail Channels started as early as in October.
Taiwan-based LCD TV maker Amtran Technology noted that sales of flat-panel TVs are picking up in the retail market amid vendors' early promotions, and the company is seeing more orders. Order share of LED-backlit models has increased to about 20% of its total orders. Amtran is optimistic about the demand for the end of the year and expects its shipments to continue to increase for the fourth quarter.