August 31, 2011
Big-screen Televisions Will Soon Be Cheaper Than iPads
A California-based research firm estimates that large-screen LCD television prices will fall by ten percent this quarter, a figure that suggests Apple´s popular iPad, just a tenth the size, will soon cost more than most TVs.
DisplaySearch also forecasts the 42-inch LCD TVs will fall to $578 by the end of the year; Apple´s high-end iPad sells for $829. Its Wi-Fi only, 32gb version goes for $599.
The industry´s five largest television producers, including Samsung and Sony, have not generated any profit whatsoever for every dollar in TV sales since last year because of the price drops.
Jeff Loff, an analyst with Tokyo-based Macquarie Group Ltd., said falling prices will likely continue to pressure earnings. “The value consumers ascribe to a TV set is lower than most manufacturers´ costs,” he told Bloomberg in a telephone interview.
“Even incremental features like 3-D, Internet connectivity and enhanced motion processing do not generate enough of a price lift to turn TV sets profitable,” said Loff.
The very first color 12-inch RCA TV sold in the US back in 1954 fetched a price of $1,000. And Samsung began offering 40-inch LCDs for around $8,000 back in 2002. Sharp Corp., Japan´s largest LCD maker, sold its first 45-inch set for $13,000 in 2004.
IPad prices have remained unchanged since the first model was introduced back in January 2010.
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