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June 04, 2009

TV Makers Might Be Developing a Complex

By Jessica Kostek, TMCnet Channel Editor

On June 12, when cable companies will switch their signal from analog to digital, the new crystal clear image might prompt some TV viewers to upgrade their television sets as well. More and more electronic stores are stocking up on the latest sleek flat screen models that are becoming thinner and thinner each time. Long gone are the days where television sets took up a major section in people’s living rooms.



 
Some of the newer liquid-crystal-display (LCD) and plasma TVs are less than one inch thick and weigh 15 to 25 percent less than previous models. Although a $100 billion industry, TV makers are experiencing a bit of a dip and are pushing the premium models.
 
During the first-quarter global shipments, TVs fell 6 percent from a year earlier, according to research firm DisplaySearch, and revenue dropped 12 percent because of the slide in prices.
 
With every new release, TVs are becoming more like works of modern art. Samsung (News - Alert) Electronics Co., the number one maker of TVs, is focusing on style to boost sales. According to the Wall Street Journal, the company is spending $50 million to market its new line of slim TVs.
 
Flat-panel TVs caught on because they were "so much thinner than the old kind of TV," said Havis Kwon, an executive at LG Electronics (News - Alert) Co., the number two maker of TVs by revenue. "But now, thickness is a problem for LCD."
 
However, some engineers and analysts worry that manufacturers are sacrificing picture quality to shrink the sets.
 
"A tradeoff happens here and that presents us with a choice," said Mr. Kwon. Some ultrathin models will emphasize style and others that are slightly thicker will emphasize picture quality, he added.
 
Even though theses TVs may have a fashion designer feel or better picture quality for some, the cost is what is driving most people away from actually purchasing a set. A Samsung LED TV has a U.S. list price starting at $2,799 for a 46-inch screen – more than comparable LCDs, says the WSJ.
 
However, Samsung's marketing campaign emphasizes energy savings and the design of the ultra-slim TVs. Executives say they aren't sacrificing picture quality, arguing the image fidelity of LEDs is higher than that of many regular LCDs of just a year or two ago.
 
But everyone in the TV making industry is racing to give consumers the smallest and thinnest LCD or plasma TV. Panasonic (News - Alert) Corp. has developed a plasma television that's just under an inch thick.
 
Sony Corp., the third-largest TV seller, was the first to offer an ultra-slim model just under a half-inch thick with a 40-inch screen that now sells for $3,500 at Sony's online store. A Sony spokesman told the WSJ that the demand has been steady, but declined to disclose how many it has sold.
 
Last month, LG Display Co., a maker of LCD panels for TVs, announced it had trimmed the screen component depth to six-tenths of a centimeter, a new record for screens that measure 42 inches or more diagonally.
 
On June 12, digital television will be new wave for the future. As for TVs, from what we are seeing now with the development of flat-screen televisions, the thinner they are the more consumers will love them.


Jessica Kostek is a channel editor for TMCnet, covering VoIP, CRM, call center and wireless technologies. To read more of Jessica’s articles, please visit her columnist page.

Edited by Jessica Kostek







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