Friday, February 16, 2007

More on the LCD Price War

BusinessWeek runs a piece today further examining the sharp declines in LCD prices brought on by no-name manufacturers who in many cases aren't even really manufacturing anything. You may remember that the NY Times ran a similar piece earlier in the week; the BW article adds some interesting data from market researcher iSuppli. Among the nuggets is the fact that LCD prices are falling 3% to 5% a month and some analysts expect 40-inch LCD flat-panel displays could be had for under $1,000 by Christmas (from an average of $1,600 today).

It is absolutely astounding that there are more than 100 HDTV brands on store shelves today, with the bulk of them selling LCDs. It is getting so simple for a start-up company to assemble a group of suppliers, contract for the manufacturing, and with virtually no overhead or marketing expenses, get their products on store shelves at a substantial discount to the name-brand manufacturers like Sony and Samsung.

As I've previously written in this space, this is a pretty positive trend for consumers, at least from the perspective of their wallets. Less clear is the impact on LCD quality -- the less well-known brands say that their products are every bit as reliable as the big guys, but of course the larger companies disagree. When you read reviews on CNET and other sites, the evidence seems to lean towards the name-brand companies' positions that the more expensive components they use combined with their own technology (the "secret sauce," if you will) is worth the higher prices they charge.

If you have experience with the quality/reliability of lesser-known brands like Westinghouse, Maxent or Vizio, let us hear about it!

5 comments:

Anonymous said...

Here's the bottom line...

Whatever tiny quality edge the Sharps and Sonys of the LCD world may have over the Vizios and Westinghouses today is so small compared to the price difference that it's absolutely not worth it, KEEPING IN MIND the fact that the LCDs that come out 2-3 years from now will make ALL of today's models, Sharps and Sonys included, look like absolute junk.

There is no sane reason to spend the premium now for a *small* edge in quality, when the technology is moving so rapidly that the offerings a couple of years away will make your investment look stupid.

I own a Vizio and a Westinghose right now. I could have bought more expensive LCDs, but I know I will want to replace these in a couple of years. So I spend 50% of the money to get 90% of the quality.

Anonymous said...

And those two spelling errors in my last paragraph are driving me nuts. Forgive my idiot fingers. :)

Anonymous said...

I would argue that there is no difference in quality between the name brands and the Vizio. They use the same panels, same silicon and in most cases the same Asian ODM to build their TV's. The main difference is price and service. Vizio's offering one year free in home service when you by their TV. I don't see Sony or Sharp making that kind of offer. TV's are going the way of the PC and the major CE guys can't do a thing about it.

Anonymous said...

I have to disagree with the opinion that these displays are virtually the same. I am a technical director for a large non for profit and have had my hands on a lot of displays. I can honestly say my Vizio's (overall) have had higher dead pixel counts and quicker picture dulling with heavy use. My Samsung’s have had very few problems (out of fifty) not to mention much higher contrast ratios for a sharper picture. You can say they use the same panel, but the quality difference is pretty obvious when they’re next to one another…check out Sam’s Club sometime.

Anonymous said...

Sony Bravia is made in Taiwan.
http://www.smarthouse.com.au/TVs_And_Large_Display/Industry/N4T4L3D7?page=1

http://investintaiwan.nat.gov.tw/en/news/newsletters/0059.html

http://investintaiwan.nat.gov.tw/en/news/newsletters/0067.html

Saying the Taiwan product quality is second to the big-guys is a total speculation based on the old paradigm.

Just remember that those big-guys quality product comes from Taiwan and China.

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