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Will Plasma Television Sales keep up against the
latest 1080p LCD HDTVs?

Plasma Televisions: a Threatened Species?

Plasma television sales have been on the decline since end of 2006 - with the worst year being 2008 - mainly as a result of the sharp growth in sales of LCD TVs. At the time, some analysts were referring to plasma as the endangered species.

Yet it seems that the present bad economic times turned out to be good times for plasma TVs. 2009 has brought with it a steep rise in plasma TV sales - with the most significant being the surge in sales of 42-inch 720p HDTVs. In addition, plasma maintained its trend in outselling LCD HDTVs at the larger-screen sizes as informed buyers continue to opt for plasma over LCD TVs.

However, many may still ask... is this enough for plasma TVs to survive?

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50-inch PN50B650 Samsung's best-selling 50" premium plasma TV

The Flat-panel TV Invasion!

Almost 75% of all TV sales world-wide are flat-panel TVs. 40-inch and 50-inch sets have become truly affordable with name-brand 42-inch 720p cheap plasma HDTVs available at under $700. Equally affordable are some of the latest name brand premium 50-inch 1080p plasma HDTV sets that are selling at under $1,300. These prices represent almost $300 in savings over 2008 prices.

Similarly, entry-level 52-inch 1080p LCD HDTVs such as the Samsung LN52B550 and the Sony Bravia KDL-52S5100 are selling at just under $1,500. Again, this represents a typical saving of around $300 over last year.

At these prices, the price difference between plasma and LCD at this size bracket is minimal but plasma still carries a price advantage over LCD - especially as one moves towards the 55-inch plus domain.

Interesting is the latest change in flat-panel TV sales and in particular in 720p plasma television sales.

Up to end 2008, consumers were not just buying flat-panel TVs. They were opting for the more expensive 1080p HDTV even at screen sizes where it is not possible to enjoy the advantage of the higher pixel count unless one is insanely close to the screen.

This was mainly the result of sales-talk by both TV makers and retailers alike. These often pointed  consumers to the more expensive 1080p LCD HDTV by coming up with 'desirable hot specs' that help inflate product price without actually bringing about that much implied improvement in picture performance.

It is unfortunate that TV makers would often take a ride over the lack of consumer understanding by manipulating consumer perceptions. It is a fact that there is still a lot of consumer confusion about HDTVs notwithstanding the increase in the presence of 1080p HDTV sets. The majority of consumers lack the necessary basic understanding of HDTV technology to make a truly educated purchase.

However the advent of the present bad economic times has brought about a new pattern in HDTV sales and in particular, in plasma television sales. Consumers are still buying large 42-inch and 50-inch HDTVs - except that now they are preferring plasma over LCD - in contrast to previous sales patterns during 2007 and 2008. The slight edge in pricing that plasma has over LCD at these screen sizes seems enough to get consumers opt for the cheaper plasma TV. This price advantage was still there even during previous years but it is only now that plasma television sales are making a comeback at this screen category.

So what is different now?

You see, consumers prefer to get a larger display and even at these tough economic times, they still tend to continue buying the same quantity of large screen HDTVs as before. But the purchasing power of most consumers is less, thus making consumer purchases more price sensitive.

This partly explains the surge in plasma television sales at the 42-inch 720p category we have seen during second quarter 2009, with unit sales going up 40% over previous quarter as consumers were looking for more value for their hard-earned cash.

We say 'partly' because while the cheaper price tag is a major contributor to this surge in 720p plasma television sales, we believe that this alone would not have been sufficient to bring about this change. Plasma has always represented a price advantage over LCDs, yet up to end 2008, plasma television sales within this category were on the decline.  What is really helping transform the new lower price into a wining sales tool is that these new low price 720p plasma HDTVs are all coming from major well-known brands - LG, Panasonic, and Samsung. This is extremely important as it helps consumers feel more comfortable about their purchase. 

Sets such as the Panasonic TC-P42X1 720p HDTV (reviewed here,) Samsung 42-inch PN42B450, and LG 42PQ30 are all selling at significantly below the $700 mark - with the cheapest being the Panasonic X1 plasma TV. Even larger 50-inch plasma TVs within the Panasonic X1 and the Samsung B450 are selling at under $800.

Despite being entry-level, these relatively cheap plasma televisions come with the latest more energy efficient displays and 600Hz sub-filed drive - this apart from more than adequate connectivity, the latest mega-contrast ratios, and solid general overall performance for the price.

In particular, the 600Hz issue - irrespective of its real contribution to an improved picture - has come at just the right time to combat the notion among technically uninformed buyers that the latest 240Hz LCDs are better than 60Hz plasma TVs. What matters for most consumers is that 600Hz used in the plasma sub-field drive display technology represents a bigger number. This seems to help drive the incorrect message that 600Hz is better than the 240Hz refresh rate in LCDs even though technically, the two are totally different and unrelated.

When in February this year, Pioneer - considered by many as the world leader in plasma HDTVs, decided to exit the plasma HDTV market, many predicted that this was the end of plasma television.

Yet contrary to all predictions, with the new cheaper models from Panasonic, LG and Samsung, plasma television sales has once again surged to a point that it is gaining back a good portion of the sales it has lost to the tough LCD competition.

At the budget category, plasma is proving once again that it is still king when it comes to overall value for money - a factor that is even more important at uncertain economic times. And at the high-end class, videophiles and informed buyers keep affirming that plasma HDTVs deliver the best picture on the market.

What about Plasma Television Sales?

A TV industry market research published by firm Quixel Research shows that plasma television sales overall during Q2 2009 had surged 31% in unit volume and 35% in dollar volume over Q1, while in the same period, large screen LCD HDTV flat panel volume sales were flat and revenues fell 7%.

And as indicated above, Quixel reports that the largest registered surge in plasma television sales was in the 42-inch 720p plasma category. The arrival of the latest 2009 models have brought about a 40% increase quarter-to-quarter as consumers were looking for value in uncertain economic times.

This definitely goes to prove that plasma televisions still has a lot to offer to the HDTV community. Less than a year ago, many analysts were already proclaiming the end of the plasma TV ear. At the time, we stated that it was too early to determine if plasma will ever succumb to the LCD competition. We believed that plasma TV technology still had a lot to offer - at least till a new and better display technology comes around. LCD is no better than plasma; in some areas it is but in others, including picture quality, plasma is still better.

The present times seem to reaffirm over believe - and that of those few TV makers that remained in the market - that plasma is still a most valid big screen TV option. It is therefore no surprise that at these bad economic times, what appeared to be a dying breed less than a year ago - 720p plasma TVs - have once again affirmed its potential in the home entertainment market - with plasma television sales within this category representing the biggest increase in sales both in terms of dollar value and unit volume over previous quarter.

2009 - A positive year in plasma TV sales overall

The 2009 represents a great comeback for plasma television sales following the decline which had started as early as 2006. The 2006 is considered by many as the year of the LCD when sales of LCD HDTVs at the 40-inch to 44-inch screen size surpassed for the first time ever 42-inch plasma television sales. Furthermore, 2006 was also the year when LCD HDTVs surpassed plasmas in global sales.

Admittedly, the right pricing for the latest 2009 models is a prime contributor - a pricing strategy that is partly the result of the fierce competition between plasma and LCD TV makers. This is resulting in some healthy price cuts for end consumers to enjoy over previous years, especially as one moves towards the really big screen category.

A year ago, no one would have ever imagined that it will be possible to enjoy a premium 60-inch plasma with THX display certification selling at just under $2,000! This is the case with LG 60PS80 60-inch plasma TV (read our review here). Equally affordable is the Panasonic 65-inch TC-P65S1 entry-level plasma TV, which is selling at under $2,500 (see our review here). This Panasonic is enjoying the top position in plasma television sales within this screen size, followed by Samsung ultra-thin 58-inch PN58B860 one-inch thick high-end plasma we recently reviewed on our site. This high-end Samsung plasma TV is selling for under $2,600.

Here we are not talking about any HDTV. Both the LG and the Samsung represents the respective brand high-end lineups, while the Panasonic S1 - despite being Panasonic entry-level 1080p HDTV series, still represents one of the best plasma HDTVs around for its exceptional black level performance and overall picture quality.

These new low prices for ultra-big screen plasma TVs are surely extremely tempting for those looking for a quality big screen TV that is no more than a few inches deep. This is the area in which plasma television sales have always surpassed LCDs - thanks to their significant price advantage over the relatively few LCD HDTVs available within this screen size. Not only, giant plasma television sales have also killed the equally valid but significantly less expensive rear projection HDTVs.

However, as indicated earlier on, this price difference starts to become less of an issue as one moves towards the 50-inch screen size. Recent developments in the manufacture of LCD displays have led to a substantial drop in the price of LCD panels. The latest prices of LCD HDTVs are more in line with those of plasma televisions of the same size, in particular for screen sizes less than and including 50 to 52-inch.

And at 42-inch, entry level 1080p plasma and LCD TVs are practically selling at about the same price. Panasonic 42-inch TC-P42S1 1080p plasma HDTV is selling at just under $800 as against the $850 of the Samsung LN40B550 1080p LCD TV - a price difference that is negligible.

Plasma still carries a price advantage overall although plasma's real price advantage at the 40 to 50-inch domain becomes significant mainly as one shifts towards the 720p HDTV category - thus explaining the surge in 720p plasma television sales at a time when consumers are becoming more price sensitive.

Lower resolution displays are cheaper to manufacture, yet while plasma 720p HDTVs are readily available, 720p LCDs at these screen sizes have almost vanished completely. Panasonic cheapest HDTV, the 42" TC-P42X1 720p plasma TV is selling online at just under $600. Instead, cheapest name brand 42-inch LCDs start at close to $800. The 40-inch Samsung LN40B550 is approximately some 40% more expensive that the Panasonic X1. And yet, other than the higher screen resolution - something that is difficult to appreciate at these screen sizes - these two HDTVs practically come with a very similar feature set.

Will plasma television sales succeed in maintaining the present healthy recovery over the LCD 1080p HDTV threat?

For sure, the latest flat-screen plasma HDTVs are capable of delivering great picture quality at a price that offers more value to your dollar. But then a lot has changed in flat-panel display technology since plasma televisions were first introduced in 2003. As things stand today, the difference in picture performances between LCD - in particular with the latest LED TVs - and plasma has become insignificant to the untrained eye.

At the same time, videophiles and informed buyers continue to choose plasma over LCD when it comes to a big screen TV for home theater use; for home theater enthusiasts, plasma TVs still deliver the best cinematic picture quality. Plasma TV reviews keep confirming over and over again that plasma television sets have an edge over LCD TVs when it comes to shadow detail and deep shade of black. A deep shade of black improves the realism of dark scenes while making colors look richer and more saturated.

Plasma TV sets also support a wider angle of view both vertical and horizontal - meaning that they do not suffer from image degradation - as you move away from the normal to the screen - associated with LCD TVs and in particular LED TVs. Furthermore, they render fast moving action better.

However, the edge in picture quality alone is not enough for plasma television sales to maintain their present healthy trend with respect to LCDs. We have seen this in the past when plasma sales were on the decline despite the better picture quality of plasma TVs. And in the end... even LCD picture quality is superb.

In a similar manner, plasma price advantage is no guarantee that plasma television sales will keep having their best against the LCD competition.

If you were to consider rear projection TVs, these had a far significant price advantage over both plasmas and LCD HDTVs, and still, big screen plasma TVs have literally killed rear projection HDTV technology.

We still believe that plasma's lower pricing is a major contributor in maintaining a healthy steady increase in plasma television sales - essential for plasma's survival overall. For sure plasma lower price will continue to force LCD manufacturers to cut their prices as well. But there is a limit to how much it is possible to keep reducing prices to remain in business. This applies to both display technologies with the difference that as things stand today, the plasma production process has a higher yield and therefore lower production costs.

In addition, plasma pricing for 2009 have managed to reach and even outdo the levels indicated by market analysts way back in 2008, as necessary to help plasma television sales maintain a healthy market share.

The issue therefore is: Will the price difference between the two technologies remains sufficient to help plasma television sales maintain their new positive trend even under better economic times? It is difficult to tell, yet...

We believe that plasma television sales will continue to represent a major portion of all HDTV sales - at least in the foreseeable future. Plasma TV technology still has a lot to offer in terms of picture performance till a better display technology emerges. Equally important, we do not think it would be beneficial to consumers if plasma TVs were to reach a premature death.

Featured Reviews and Product Guides 

2009 Samsung plasma TV Reviews:

Samsung Plasma Lineup:
Detailed product guide covering the full 2009 Samsung plasma lineup.

Samsung Series 6:
Samsung most affordable premium plasma series

Samsung Series 8:
Samsung's best plasma TV for 2009

2009 Panasonic Plasma TV Reviews:

2009 Panasonic Plasma TV Line-up - full product guide.

Review: X1 entry-level 720p HDTVs - covering also the X14 and the C1

Review: S1 entry-level 1080p HDTVs - covering also the S14 and the U1

Review: G10 THX-certified Premium 1080p HDTVs - covering also the G15 series

The Panasonic V10 in detail - Reviewing the best-rated Panasonic plasma TV for 2009

More 2009 Plasma TV Reviews

Cheap Plasma TV Reviews - 2009 Update:
Sub $1,000 name-brand plasma TVs within the 42-inch and 50-inch category.

2009 Best Plasma TVs - Samsung B860 vs. Panasonic V10:
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LG Plasma TVs:
Full 2009 product guide and detailed review of LG high-end PS80 plasma TV series

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Check out for the latest offers on Plasma TVs at amazon

Cheapest 50" plasma TV from Panasonic. For our plasma TV review of the Panasonic X1, please click here.

Best-selling Panasonic plasma TV for 2009. More info on the G10 is available at our Panasonic plasma TV review here.

Samsung best selling plasma HDTV; for more information, please refer to our B650 Samsung plasma TV review here.

Best-selling 58-inch big screen option from Samsung

Samsung B860 plasma TV review available on our site here.

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Would You like to get the best out of your HDTV?

There is no better way to make the most out of your new HDTV then to invest in a set-up DVD.

A great calibration disc is the Avia II Home Theater Set-up DVD, an exceptional AV calibration tool for both the novice and the expert.

Another interesting calibration disc is the Digital Video Essentials HD, but this is more suitable for advanced users.

For more information, please check our Guide to HT Set-Up DVDs.

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