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Price, Picture Quality Top Concerns in LCD TV Report

14 Nov, 2007 By: Chris Tribbey

While consumers will be keeping a close eye on the price of LCD TVs this holiday season, the companies that make the TVs are watching even more closely, according to a report released Nov. 14 by research firm iSuppli.

Price and picture quality are the top two factors for consumers when it comes to buying an LCD TV, according to the report, followed by brand and technology.

“This phenomenon is already evident in the surging market shares of low-cost LCD TV brands,” said Riddhi Patel, principal analyst of TV systems for iSuppli. “It's also evident in the fact that television brands are emphasizing efficiency and cost cutting and are making increasing use of Original Design Manufacturing (ODM) services.”

The use of ODM — third-party contract manufacturers — has allowed companies, specifically in Taiwan and China, to avoid setting up production facilities of their own, lowering the price for consumers, and the threshold for entry into the market, iSuppli said.

“The rise of Vizio in the North American market serves as a good example of the new emphasis on price in the LCD TV business,” the report read. Vizio has risen from a relative unknown company last year to the top in terms of LCD TV units sold, the report said.

iSuppli will hold a Flat Information Displays conference to present more research on the TV industry in Las Vegas Dec. 4-5. Visit www.isuppli.com/fid2007 for more information.

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