Industry analyst iSuppli is concluding that LCD TV units have reached their lowest level in price points after many months of decreases, and will either steady out or perhaps even rise a few dollars in the months ahead. However, the price leveling mainly affects relatively smaller screens of 32 inches or less.
Prices have stopped declining because the average unit's main component--the screen itself--cannot be mass-produced for any less than current economics will allow, and the components are now starting to cost more at the wholesale level, according to Wired.
Display screens account for at least half of the final price at the retail level. A tight supply of LCD components also contributes to the steady-to-slightly higher prices, which began to emerge in April. Because of intense competition during the holiday selling season in late 2006, some 32-inch LCD models were selling at less than actual manufacturing costs.
