Strong demand for big-screen plasma and liquid-crystal-display television sets has created shortages for some models and convinced set makers and retailers to hold the line on prices. As sleek flat-panel and high-definition television sets became more affordable, sales soared during the holidays. Sales of ultra-thin, wall-mountable LCD TVs rose nearly 122% last year to 19.6 million sets while plasma-TV sales rose at a similar pace, to 4.6 million units.
Still, certain sizes and types of TVs did not move as briskly. Bargain hunters can find the best savings in HDTV rear-projection televisions. Bigger, boxier rear-projection sets lost some appeal amid the holiday sales frenzy as high-definition plasmas fell below $3,000. A 62-inch Toshiba Ltd. rear-projection HDTV is now being discounted to $2,600, down from $3,200 before Christmas. RCA, a brand of TCL Corp. of China, this month showed a Scenium 50-inch HDTV that will sell for $1,700 beginning in June. The prior model was $2,000. Sharp Electronics Corp. recently quit the rear-projection TV business, leaving retailers holding discontinued models.
There are also likely to be model-closeout discounts in March and April, when most new TVs begin arriving and retailers look to unload remaining inventory. But for popular plasma screens, shortages are more common than post-holiday price cuts.
"I still have no 50-inch plasmas to speak of," says Chet Flynn, president of New Resource Inc., a Massachusetts distributor of high-end TVs and consumer electronics. Inventories of the sets were depleted in December and should remain tight through May, helping mute further price drops, he says.
Still, prices remain at historically low levels. The average price for plasma sets dropped 11% between June and December alone. LCD TVs also plummeted 18% in price during the same period, says NPD Group, a Port Washington, N.Y., retail watcher.
Selections are low for some 42- and 50-inch high-definition plasmas and 32- and 37-inch LCDs, but the reduced holiday prices will remain in effect at least through the Super Bowl on Feb. 5. A smattering of TVs also have rebates.
While manufacturers say they expect to slow price declines, sheer competition should keep prices falling at double-digit rates as the year advances. LCD and plasma supplies should catch up with demand by midyear and continued competition should keep prices declining overall.
Smaller LCD TVs are still plentiful and benefiting from the past year's declines. Prices for these kitchen- and bedroom-size sets aren't coming down as fast as their larger siblings, however, because they also can used as computer monitors. A Sharp 20-inch LCD TV-monitor sells for about $500 at a dozen online outlets.