By Richard Shim
Staff Writer, CNET News.com
Retailers expect flat-screen televisions to be highly popular this season–and recent price drops are only expected to boost sales.
But for all the hype around next-generation televisions, flat panels have a way to go before they rival their cheaper CRT (cathode ray tube) counterparts in performance–or cost.
“Consumers think they’re buying the best in technology (with flat-panel televisions), but it’s more of an emotional purchase,” said Bob O’Donnell, an analyst with researcher IDC. “It’s part status and part wanting to be on the cutting edge.”
The technologies behind flat-panel televisions–plasma and liquid crystal display–let manufacturers create larger, thinner and lighter sets. Flat panels are getting as big as 60 inches but weigh only a fraction of the largest CRT sets, the consumer versions of which are limited to about 42 inches. The comparatively petite cases of flat screens also allow them to be hung from walls, although this is rarely done because it makes sets difficult to move or adjust. Still, neither plasma nor LCD technology quite measures up to CRT when it comes to picture quality.
As the list of companies making tube sets dwindles, the roster of those in the flat-screen business is growing. The average price of plasma-screen televisions this year was $3,342 while LCD TVs sold for an average of $1,591, according to iSuppli. Profit margins for flat-screen sets are in the mid-to-high-teens percentage range, depending on screen size. This has convinced nontraditional players such as Dell, Gateway, Hewlett-Packard and Polaroid to enter the television biz.
Published: December 2, 2004, 3:56 AM PST
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