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HDTV's May Cost More This Christmas
Despite a weak economy, consumers shouldn't expect big price breaks on LCD television sets this Christmas. A recent HDTV industry report suggests that although the economy remains weak, retailers will not have the luxury of offering customers lower prices on High Definition Television sets this upcoming holiday shopping season because of an acute shortage of glass. There is however hope that glass manufactures may meet demand by LCD TV manufactures by the end of the third quarter 2009.
Although there was an extreme oversupply situation in the fourth quarter of 2008, suppliers of glass for large-sized LCD panels used in televisions and computer monitors began cutting capacity to less than 50 percent by the end of last year, according to Gary Robinson, long-time HDTV reviewer. Robinson suggested that a number of glass producers ceased operations at some of their glass-producing facilities.
Because of this, glass suppliers now are unable to increase their LCD panel production capacity despite stronger than expected television demand from China, India and parts of Europe. Global prices for large-sized LCD panels have risen for the last five months and are expected to increase again in July 2009.
Pricing for LCD TV panels are expected to peak during the end of the 3rd quarter 2009 and as glass manufacturers increase their production the commercial costs for LCD TV panels are expected to decrease through the end of 2009 and into early 2010.
If glass manufacturers can respond in time, merchants will be able to offer their customary round of price slashing for Black Friday. Over the years, US retailers have relied on the pricing established on the busiest shopping day of the year to drive sales for Plasma and LCD television sets throughout the end of the holiday season.
Despite the possibility of higher flat screen television prices this holiday season, HD television manufactures, like Vizio and Samsung may fair well because of added sales outlets, namely the Internet. Robinson claims that many consumers are becoming more comfortable with buying LCDs from Internet retailers and mass merchandisers, and consumers have become more concerned about paying too much for a flat screen television set.
Internet retailers are offering televisions at lower prices than traditional electronics specialty stores. Many online retailers, such as Amazon.com are willing to ship many HD sets for little or no cost, making it a wise decision for many consumers.
If glass manufactures can increase their capacity in the coming weeks (it is estimated that it takes six to eight weeks for a glass furnace to become fully functional) consumers should expect lower prices this year on LDC television set from specialty stores, mass merchandisers, and Internet retailers.
However, if television manufactures are not supplied with the necessary amount of glass in the next few weeks, consumers may be forced to shop online to find the best bargain for this year's flat screen television set as traditional retailers will not have the option to reduce prices on their high definition televisions. We'll see how it all pans out, but my bet is they'll find a supplier somehow, someway.
About the Author Michael New Jr. is an authority in the high tech industry. He has written hundreds of articles relating to HDTV Reviews and has published numerous studies on Vizio products. Contact Info: Michael New Jr. mikenew@gmail.com http://cleverreviews.com
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