Samsung Electronics Co. and LG Electronics Co. dropped the price of their 40-inch liquid crystal display TV earlier this month by nearly 1 million won (approx. U.S. $973), sparking a price war in the LCD TV market between the companies.
The recent price cut is expected to help the higher-end TV gain unprecedented popularity, making it more or less a common household electronic good. This could potentially heat up the competition between Plasma Display Panel TV and LCD TV as well.
Industry insiders said that Samsung cut the price of its 40-inch and 46-inch LCD TVs by 0.9 million won (approx. $876) and 1.19 million won (approx. $1,158) respectively. This makes the latest 40-inch LCD TV unveiled in late June 4.9 million won (approx. $4,770), from the previous 5.8 million won (approx. $5,646). The model released in Febuary also went down significantly from 5.5 million won (approx. $5,355) to 4.6 million won (approx. $4,478).
Samsung's 46-inch LCD TV also made a whopping price drop amounting 1.19 million won (approx. $1,158), from 7.99 million won (approx. $7,779) to 6.8 million won (approx. $6,620).
LG Electronics likewise responded by cutting their LCD TV prices by as much as 0.8 million won (approx. $779). The company brought down the price of its 42-inch model from 6 million won (approx. $5,841) to 5.2 million won (approx. $5,062), and the 37-inch model from 4.7 million won (approx. $4,575) to 4.3 million won (approx. $4,186).
Experts say that the recent move by two electronics giants is aimed at enlarging the pie of the LCD TV market by making it more affordable to a broader spectrum of consumers. This is expected to trigger an intense competition between LCD and PDP TV in the years to come.
Samsung Electronics is soon to increase its monthly LCD panels output to nearly 150,000, while standardizing their sizes to 40 and 46 inches. "Our efforts to increase productivity have paid out by making our production unit more cost effective, and we can easily offset the price cut," said the company official. (The Korea Herald)
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