I remember maybe two years ago walking by the Plasma tvs and seeing out of this world prices, 5,000 and up. I went to circuit city today and I couldnt believe my eyes, WOW! 50 Inch Plasma tvs for 2,000! 42 inch Plasma tvs for 1299! What caused this dramatic price drop in two years? And is the quality improving or is it the same?
Answer:
Yes, many manufacturers cause competition, but it%26#39;s also a question of who%26#39;s competing over what.
There are more manuacturers of plasma and LCD screens, the ones who provide the visuals that the TV makers plug into the rest of the guts to make the total package. And the screenmakers are cranking out higher quality screens for less.
The big brands (Sony Sharp), left to their own devices, had planned to take advantage of the lowering cost of screens to make lots of money on margin. However, the upstart makes were buying the lower quality quantities and selling them at cut-rate prices. Now, maybe the quality of the unknown brands is uncertain, but it%26#39;s pretty well known that many of these products produce just as good a picture as the big brands.
The success of these unknown brands has forced the big brands to lower their prices. As long as the factories continue to lower the cost making those screens, and the upstarts are able to pass those savings on to the consumer, overall flatscreen TV prices will continue to slide. many companies = competition = low margins
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