Washington, D.C. (October 26, 2006)
--
Sony said today that LCD TV prices will fall faster than
expected due to increased competition.
Nobuyuki Oneda, Sony's chief financial officer, says the price of the flat-screen TV will likely drop as much as 30 percent from March 2006 to March 2007. The company previously estimated that LCD TV prices would fall just 25 percent in that time period.
"Competition is very intense," Oneda said Thursday.
The executive's comments follow other indicators signaling that flat-panel TV prices are decreasing more rapidly than first thought.
In the last few years, PC makers such as Dell and Gateway have entered the flat TV category, leading to a glut in supply. In addition, traditional TV makers such as Sony and Sharp have ramped up production to meet rising consumer demand.
However, demand has not met expectations, forcing companies to lower prices even further to eliminate inventory.
Bloomberg News reports that Sony expects to sell 40 percent of its fourth quarter shipment of six million LCD TVs. But the shrinking prices is cutting into the company's profits.
Nobuyuki Oneda, Sony's chief financial officer, says the price of the flat-screen TV will likely drop as much as 30 percent from March 2006 to March 2007. The company previously estimated that LCD TV prices would fall just 25 percent in that time period.
"Competition is very intense," Oneda said Thursday.
The executive's comments follow other indicators signaling that flat-panel TV prices are decreasing more rapidly than first thought.
In the last few years, PC makers such as Dell and Gateway have entered the flat TV category, leading to a glut in supply. In addition, traditional TV makers such as Sony and Sharp have ramped up production to meet rising consumer demand.
However, demand has not met expectations, forcing companies to lower prices even further to eliminate inventory.
Bloomberg News reports that Sony expects to sell 40 percent of its fourth quarter shipment of six million LCD TVs. But the shrinking prices is cutting into the company's profits.