LCD average selling prices fell twice as fast in 2009 over 2008

The average LCD TV selling prices fell twice as fast over 2009 than they did in 2008 because of oversupply, according to research from DisplaySearch.

Overall blended average selling prices for LCD TVs fell 24 percent year-on-year in 2009, while PDP TVs saw a decline of 21 percent. The first half of 2009 saw better than expected unit demand because of price erosion, making it easy-peasy for brands to nip costs. LCD TV panel prices had fallen loads between fourth quarter 2008 and the first quarter 2009, which led on to affect the amount of products sold in Q1 2009 and Q2 2009.

The situation U-turned in Q3 and Q4 of 2009 though – panel prices went back up and peaked in September, where it stayed elevated during a traditionally weak seasonal period. DisplaySearch reckons that TV manufacturers and retailers handed over margins gained early in the year to make sure that prices didn’t stagnate or rise, thereby ruining demand.

According to the report, LCD TV prices are expected to decline at a less perilous rate in 2010 as panel price erosion slows. Huge and growing demand in China is keeping suppliers on their toes. As well as this, we can expect fancy 3D TVs to help offset natural price erosion.

PDP TVs will probably fall between 15 and 25 percent over the course of the year. That’s faster than LCD TVs but slower than 2009’s steep decline.