LCD and Plasma Prices Dropped by a Third in '05

Reuters runs a story today on how the decline in LCD and plasma display prices is impacting manufacturers' production plans for the competing technologies. According to research firm DisplaySearch, 40-inch LCD panel prices declined by 36% in 2005, compared to a 31% drop for similar sized 42-inch plasma displays. DisplaySearch is forecasting 25% declines in '06 for both LCD and plasma. The research firm predicts that by 2009 LCD will have grabbed 50% market share in the key 40-44 inch segment - up from 6% last year - while plasma's will have dropped from 71% to 49%.

In my mind, DisplaySearch's market share numbers are pretty aggressive in favor of LCD. Plasma has such a head-start in the over 40-inch category that it will take some pretty big momentum shifts for LCD to catch up. While the LCD makers are investing heavily in new production facilities that will enable economies of scale to lower LCD panel prices, plasma manufacturers are doing the same thing. And while LCD backers are spending their time on 40-inch displays, 50-inch plasmas are increasingly becoming the norm...case in point, Panasonic's 50-incher goes for under $3,000 now, which is less than most good 40-inch LCDs.

Here's the Reuters story link:

http://news.yahoo.com/s/nm/20060302/tc_nm/summit_displays_dc;_
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