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The cost of brand plasmas set to rise.

Discussion in 'Plasma TVs' started by Stuart Wright, Mar 25, 2005.

  1. Stuart Wright

    Stuart Wright
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    The news broke yesterday (March 24, 2005) that Pioneer are to close 25% of it’s global manufacturing facilities due to oversupply and price falls in the plasma and DVD recorder markets.
    I think this is happening because Pioneer, while trying to compete with cheaper (and inferior) kit from Korea and Taiwan, have been selling at a massive loss.
    Basically the quality panels have been selling too cheaply.
    Also rather than use Pioneer panels, OEM manufacturers have been sourcing their components from the cheaper markets.
    As a result, it looks like Pioneer will be repositioning themselves in the market. They are trying to sell their plasmas as high-end kit while allowing/encouraging them to be heavily discounted. The two ideas are at odds.
    I think we may see Pioneer put the prices of their kit up, get rid of the retrospective discounts and focus on more specialist AV retailers (rather than selling through Currys, Dixons and Comet). And other big brand manufacturers will probably follow suit.
    This will leave the cheaper products from the likes of LG and Tiny at the budget end of the market for those people who care less about picture quality and more about getting a big screen for very little cost.
     
  2. Paul D

    Paul D
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    I thought Panasonic have just announced the opposite to Pioneer for their panels/production.
    I thought i also read Panasonic are opening another panel plant and tying up with Hitachi.

    Although i have never really rated the Pioneer panels(mainly due to contrast/black levels and higher price), a lot of people on here really love them.
    I don't think they would be too happy paying more for their panels, especially when they see the price of the Panasonics going down.

    LCD is making large strides, meaning Plasma will have to keep coming down to compete.

    I only hope Panasonic don't have a change of heart and (or already have plans to) follow suit. I plan on buying a 8 series 50" (panel only) in September, and hope it will be less than the current 7 series price of £3500!
     
  3. AML

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    I think such a move would be crazy and suicidal. LCDs are getting better and better and are now reaching full HDTV specs. Something plasmas still need to do.
    There are also new technologys on the horizon set to come out bigger cheaper and with higher specs. If plasma makers arent carefull they will be left behind.
     
  4. superpixel

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    I'd have thought if you were over-producing, then scaling back production to meet demand more closely would overall help reduce prices, not raise them...

    I suspect the demand has been lacking for Pioneer's 'business' panels - twice the cost of SD panels can't be justified for most business plasma needs, their 'Elite' range of plasma televisions - savings of well over $3000 can be had on their own 'HDE/XDE' range with identical specification, and those lavish £1000+ DVD recorders can't have been best-sellers...

    Little of this affects the UK AV Market, and with the new and much cheaper HD Panasonics, Pioneer have major competition to contend with, so price-cuts are the very least that are in order. I'll eat my hat if you see like-for-like actually escalating in price for the consumer.
     
  5. SKA.face

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    Pioneer won't/can't put the prices up,it's as simple as that,that's the nature of the beast.
     
  6. LV426

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    I predict the Plasma market dying out in favour of LCD and/or other emerging technologies in the not-too-distant future. (Heresy?) So they are probably doing the most astute thing to do, in the circumstances.
     
  7. GrahamC

    GrahamC
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    I agree with this, plasma will only survive while the bugs are ironed out of the LCD panels. The plasma market is at the start of a controlled phase out. :cool:
     
  8. braveknight

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    Personally I would bet on the other emerging techs getting their acts together before LCD hits a reasonable price point at large sizes - and by then they'll have other advantages over LCD.

    Although LCD may well edge out what exists of a 32" / 37" plasma market.
     

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