IHS noted that the "the 4.9 percent contraction in LCD TV panel pricing was the steepest in at least 12 months" and was the second month in a row when prices declined by more than four percent. IHS said there was no reason to believe that the price decline would not have continued in October.
"Slumping demand in Western Europe and North America are primarily to blame for the poor performance of LCD TV panels," said Sweta Dash, senior director for liquid crystal displays research at IHS. "Given the already faltering economies of those regions and the threat of a double-dip recession looming, global LCD TV shipments continue to suffer, impacting the TV panel market especially hard."
To counter the demand problem, panel manufacturers apparently offered "very aggressive prices for the forthcoming Black Friday and Christmas holiday buying season in the United States and Europe" which are more than likely used by LCD TV vendors to bring TV prices down in a cut-throat competitive market environment.
IHS said that September pricing for 40- and 42-inch LCD TV panels fell by $10 to $15 on average and was down about 5 percent for 46- and 47-inch panels. The firm believes that the price reductions will enable TV vendors to offer 42-inch LED TVs for less than $400 during the Black Friday buying frenzy.