If you didn't go shopping for a television in 2004, you will be in for a surprise next time you do. In 2004, retailers began to relegate traditional tube televisions to secondary display areas, while LCD and Flat panel television were featured in the center stage of consumer electronics store displays. As a testament to the true impact of flat panel television on the consuming public, even Walmart began featuring both Plasma and LCD televisions as part of the product offerings in 2004.
However, from my perspective, although both Plasma and LCD flat panel televisions made great impact, both in terms of affordability and style appeal, it was the LCD television that really took off. With screen sizes getting larger and prices dropping as much as 30% or more, in some cases, the LCD television began to approach the upper end of traditional tube television price points during the past year.
This downward price trend was made possible by two main factors:
1. The entry of new non-traditional television manufacturers, most notably from Taiwan and China, making the LCD market more competitive.
2. Increasing supply as the manufacturers cranked up their assembly lines and over-produced for the market.
One of the manufacturers that lead the way early in 2004 in the downward price pressure on LCD televisions was Syntax. Their LT30HV was one of the first large screen 30-inch LCD HD-compatible sets to break the $2,000 price barrier. Since then, several manufacturers, including Dell and Westinghouse Digital have entered the budget-priced LCD television market in a big way. As a result, prices on my expensive LCD televisions made by traditional manufacturers, such as Sharp, JVC, and Samsung have dropped also.
Although it is expected that, as the market shakes out in 2005, prices of LCD televisions will stabilize, the significant price drops experienced in 2004 have definitely positioned LCD flat panel televisions as competitor for customers going into retailers expecting to buy a traditional tube television.
However, don't count out tube-based television quite yet. It appears that Samsung, LCD, and Philips have come up with a slim profile picture tube that, it hopes, can appeal to consumers as a low-cost alternative to flat panel televisions. Expect to see models arriving on store shelves sometime late in 2005.
For additional resources on LCD televisions, check out my LCD television FAQs and my LCD Television Top Picks pages.
HDTV
Looking back on 2004, HDTV continued made major inroads. Newsworthy developments, favorable to consumers, were the increased amount of HDTV services through Cable (COX, Comcast, And Time Warner) and Satellite (including the introduction of VOOM, the first HDTV-only satellite service). Also, all major television networks were on board with increased HDTV broadcasting of their primetime schedules.
Besides the programming and service side, both the price and availability of HD-compatible televisions increased. More televisions with built-in HDTV tuners were available as well as the increased availability of HDTV-compatible sets in smaller screen sizes. Whereas, last year at this time, it was rare to see an HD-compatible television smaller than 30-inches at your local dealer, now you don't have to big a big TV to get HDTV as more sets in the convenient 27-inch screen size are becoming more common. Manufacturers, such as Zenith, Samsung, and Sony have jumped on board with smaller screen HD-compatible televisions. Watch for this trend to continue in 2005.
For additional information on the state of HDTV, check out my HDTV FAQs.
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