LCD panels see price reduction across the board

By Justin Mann on June 21, 2006, 3:42 PM
Could the pricing on LCDs drop sharply soon? While we've seen steady declines in prices for LCD monitors and LCD televisions over time, many still consider the costs too high. That may soon change, though, with the cost of LCD panels dropping sharply, lower than they've ever been before. This month, the average cost of a 17” panel dropped by $3. A minor percentage, but a large one considering the impact it would have across hundreds of thousands of devices. The TV panels dropped even more, with changes as high as 5%.

Panel pricing released by WitsView today indicated that the average selling price (ASP) for 17-inch monitor panels dropped U$3 to US$104 compared with prices in the first-half of June. The ASP in the 17-inch segment is already lower than the production costs at first-tier panel makers, according to WitsView, and the ASP is under pressure to drop further.
As the article mentions, once the higher summer-time/school demand begins to wane, the prices begin to dip even further, as demand lessens. It's probably only another two years or so before the cost of LCD devices beats the cost of CRT devices as more manufacturers halt production of smaller sized and lower quality CRTs.

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