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

Almost 90% 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 selling at close to $500.

But equally affordable from within the 2011 HDTV lineups are some of the latest 50-inch 1080p plasma HDTV; these are selling at under $900. Sets within this category include the Panasonic VIERA TC-P50S30 50-inch 1080p Plasma HDTV; at $800, this is one of the cheapest 50-inch 1080p HDTVs. Delivering even more for your money is the Samsung PN51D550 51-Inch 1080p 600Hz 3D Plasma TV - which at $900 is the cheapest 50-inch 3D HDTV for 2011.

Price difference in 2011 HDTV pricing over 2010 sets is minimal except for 3D TVs in which case these are turning out to be significantly cheaper than in 2010.

However, 2011 plasma TV prices represent major savings over corresponding LED HDTVs from this year lineup. For example, the popular 46-inch UN46D6400 Samsung 3D LED TV is selling on amazon at $1,300 - almost $400 more than the larger Samsung PN51D550 3D plasma TV referred to above.

On the other hand, price difference between plasma and LCD TVs at these screen sizes is minimal though  plasma still carries a price advantage over LCD; this price advantage increases as one moves towards the larger 54-inch HDTVs and above.

Interesting is the change in flat-panel TV sales that has been taking place since 2009 due to the bad economy, in particular when it comes to 720p plasma HDTVs. Up to end 2008, consumers were mainly opting for the more expensive 1080p HDTVs even at screen sizes where it is not possible to enjoy the advantage of the higher pixel count unless one is too close to the screen.

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

It is unfortunate that TV makers and retailers 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; and TV makers and retailers know this very well.

Plasma Televisions are still alive!

The advent of the bad economic times that followed towards end 2009 has brought about a new pattern in HDTV sales and in particular, in plasma television sales.

Consumers continued to buy large 42-inch and 50-inch HDTVs except that in contrast to previous sales patterns, they started preferring plasma over LCD. The slight edge in pricing plasma has over LCD at these screen sizes especially as one moves towards 720p HDTVs seems it is enough to get consumers opt for the cheaper plasma TVs.

This change in trend of plasma television sales started towards last quarter of 2009 when for the first time since 2006, plasma TV sales started to recover. 2006 is considered by many as the year of the LCD when sales of 40- to 44-inch LCD HDTVs surpassed for the first time ever 42-inch plasma television sales. 2006 is also the year when for the first time, LCD HDTVs surpassed plasmas in global sales.

This recovery in plasma television sales towards last quarter of 2009 did not make up for the drop in sales during the rest of 2009, but this positive trend has continued till present. Not only, during the fourth quarter of 2010, DisplaySearch stated that worldwide plasma panel shipments were up 9 percent year-over-year, hitting a record high of 5.2 million units during the period. In addition, during 2010, plasma panel shipments reached 19.1 million worldwide notwithstanding the heavy push by TV makers and retailers favoring the latest and more expensive LED TVs.

The most significant surge in plasma television sales has been registered in the 42- and 50-inch 720p HDTV categories. In addition, plasma continues to outsell LCD and LED HDTVs at the larger 60-inch market as informed buyers continue to opt for plasma over LCD and LED TVs. It is at these extreme categories that plasma offers the best bang for your buck.

This plasma price advantage has always been there but it is only during these bad economic times that plasma television sales have made a comeback at these screen categories as most consumers have become less willing to spend more money than they actually need on their HDTV purchase. Partly, this also explains why the surge in LED TVs we have seen during 2009 slowed down during 2010.

But what is different now?

Consumers continue to prefer larger displays and even at 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 since last quarter 2009.

We say 'partly' because while the cheaper price tag is a main contributor to the surge in plasma television sales at the larger screen sizes, it is not so much of a major advantage over LCD at the smaller 42 and 50-inch 720p HDTVs.

Rather, we believe that this alone would not have been sufficient to bring about this change in plasma TV sales. Plasma has always represented some sort of price advantage - no matter how big or small - over LCDs, yet prior to the recession, 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 720p cheap 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 43-inch Samsung PN43D450 the 42-inch Panasonic VIERA TC-P42X3 are selling at a most affordable price tag of less than $540 at the time of this write-up. Moving to a 50-inch 720p HDTV is equally affordable; the popular Panasonic Viera 50-inch TC-P50X3 and the Samsung 51-inch PN51D450 are both selling on amazon at under $700.

Despite being entry-level, these relatively cheap plasma televisions come with the latest more energy efficient display panels 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 and 480Hz LED LCD TVs 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. For the uninformed, 600Hz is better than the 240Hz or 480Hz refresh rates found on LCD TVs even though technically the two are totally unrelated.

When in February 2009, 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/LED TV 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 difficult economic times. And at the high-end category... well, videophiles and informed buyers keep affirming that premium plasma HDTVs deliver the best picture on the market - better than any high-end LCD or LED HDTV.

Plasma Television Sales: More than just a temporary positive trend

A TV industry market research published by firm Quixel Research shows that plasma television sales overall were up 14 percent from the first quarter of 2009 to the first quarter of 2010, compared to a 6 percent jump in LCD TVs with screens 40-inch and larger. In the first quarter of 2010, plasma represented about 20 percent of all TVs 40 inches or larger, Quixel said.

In another study published in February 2011, DisplaySearch said that while plasma is having trouble competing with LCD pricing at anything less than or equal to 42-inch HDTVs (due to the minimal price difference between the two) plasma television sales in 2010 at 50-inch and larger amounted to almost 41% of the HDTV market - thus representing a huge comeback over previous figures.

Plasma television sales are definitely still going strong in a market characterized by an overall year-to-year increase in sales of flat panel HDTVs - despite the present bad economy.

This goes to prove that plasma televisions still has a lot to offer to the HDTV community. When in 2008, market analysts proclaimed the end of the plasma TV era, we stated that it was too early to determine if plasma will ever succumb to the LCD competition; at the time, the buzz word was LED LCD TV. But we believed that plasma TV technology had still a lot more to offer. LCD and the latest LED HDTVs are in no way better than plasma; in some areas they are especially when it comes to power consumption, but if you are after  pristine picture quality, nothing bests the best plasma HDTVs.

The present times seem to re-affirm our belief - 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 what appeared to be a dying breed, has once again affirmed its potential in the home entertainment market at a time when consumer purchases are becoming more price sensitive.

The Real Plasma TV Advantage

Admittedly, the right pricing for the latest plasma TVs is a prime contributor - a pricing strategy that is partly the result of the fierce competition between plasma and LCD TV makers. The result is a healthy price cut for end consumers to enjoy especially as one moves towards the really big screen category.

And if there is a screen size where plasma technology really delivers is at the larger 60-inch plus screen category. No one would have ever imagined a few years back that it would be possible to get a 60-inch plasma TV for under $1500. This is the case with the latest 60-inch LG 60PV450, which at $1,400 online, is possibly the cheapest name-brand massive plasma TV presently available on the market.

But equally affordable within the same 1080p HDTV category are plasma HDTVs from Samsung and Panasonic. The 59-inch Samsung PN59D550 3D 1080p plasma HDTV and the 60-inch Panasonic VIERA TC-P60S30 1080p Plasma TV are both selling online at close to $1,700. In addition, larger models such as the 64-inch Samsung PN-64D550 ($2,400) and the 65-inch Panasonic Viera TC-P65ST30 ($3,000) - while not cheap - still represent a saving of at least more than a $1,000 over corresponding LED TVs. 

These 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 and even more so the latest LED TVs. Not only, plasma television sales at these massive screen sizes have killed the equally valid but significantly less expensive rear projection HDTVs; in fact, it is estimated that sales of rear projection TVs had fallen to a low 3% for 2010. 

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

Picture Quality: For sure, the latest flat-screen plasma HDTVs are capable of delivering great picture quality at a price that offers more value to the 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 the latest LED TVs - and plasma has become unperceivable to the untrained eye, especially when taking the best seat.

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 re-affirming that plasma television sets have an edge over LCD and even LED 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 - meaning they do not suffer from the same image degradation as you move away from the normal to the screen of an LCD or LED TV. 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 and LED TVs. We have seen this in the past when plasma television sales were on the decline despite the better picture quality of plasma TVs. And in the end... even LCD picture quality - when viewed from the best seat - is superb.

Price Advantage: In a similar manner, the plasma price advantage is no guarantee that plasma television sales will keep having their best against the LCD/LED TV competition. Consider rear projection TVs; these have a far significant price advantage over both plasma and LCD/LED HDTVs, and still big screen plasma TVs have literally killed the rear projection HDTV market.

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's lower price will continue to force LCD manufacturers to cut their price as well. But there is a limit to how much it is possible to keep reducing prices to remain in business. We are already seeing a minimal price difference between corresponding 2010 and 2011 HDTV models.

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 2010/2011 have managed to outdo the lowest levels indicated as necessary by market research analysts way back in 2008 to help plasma television sales maintain a healthy market share.

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