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Westinghouse President Says LCD TVs To Replace CRTsAnticipates dramatic LCD TV price compression in 2005 (November 24, 2004)
Westinghouse Digital Electronics president Douglas Woo made the case for LCD TVs becoming the CRT replacement technology of choice for consumers at the Flat Information Displays Conference held last week in San Francisco.
The primary advantage of LCD TVs, Woo told attendees, is the product’s ability to dramatically decrease in price and approach a price closer to CRTs faster than other TV technologies. Woo pointed to Westinghouse Digital’s own 27-inch model which dropped 56 percent in 11 months—from $2,499 in January 2004 to a current street price as low as $1,199.
In 2005, Woo expects aggressive price compression to continue for the most popular LCD TVs —27- to 37-inch—due to dramatic reductions in panel, component and assembly costs. Price reductions will lead to shortened product life cycles, continuous new product introductions and a wider range in feature sets between brands and models, Woo said.
Woo also pointed to the current blurring of IT and CE (consumer electronics) products as another factor driving LCD TV growth. “The explosion of crossover content and video-based applications being created in the IT space necessitates a blurring of the product space and the resulting brand expansion from both the IT and CE sides,” Woo said. “We should expect further attempts by consumer electronics brands, including Westinghouse Digital, to move into the IT space with multimedia displays and products which incorporate display functionality.”
Woo’s presentation, “Marshaling Global Forces: Why LCD Will be the Successor to CRT TV Technology,” reviewed the competition among plasma, direct view LCD, projection CRT, LCD, DLP (digital light processing) and LCOS (liquid crystal on silicon) to replace cathode ray tube (CRT) technology—a ruler in the industry for more than 70 years.
Despite LCD TV price compression, Woo does not believe retailer margins will collapse because panel makers who want to drive market share will be motivated to protect retailer margins. The success of LCD TVs will also rely upon retailers in promoting the product and meeting consumer’s needs, such as providing installation, wall mounting services and access to high-definition sources such as satellite boxes, HD antennas and cable subscriptions, Woo said.
“The companies and brands that will come to dominate the industry will be those that have the capability to act decisively and with speed, and who have retained channel partners who have also committed to act with equal decisiveness and speed.” Woo said. “There are progressive retailers who understand this model and have accepted this challenge to adapt their business practices to this changing reality.” “I believe 2005 will be a watershed year for the industry,” Woo said. “The LCD TV wave is coming.”
About Westinghouse Digital
Westinghouse Digital Electronics is extending the 100-year-old Westinghouse promise into the digital age by making it easier for mainstream consumers to experience the excitement of the latest in digital entertainment. Through superior technology and design, the company offers consumers products that are reliable, easy-to-use and deliver the best value in digital entertainment devices. Westinghouse LCD TVs are available nationwide at major consumer electronics retailers, including Best Buy, The Great Indoors, J&R Music and Computer World, Boscov’s, Cambridge Soundworks, Handy TV, Electronics Express, Rex Stores, American TV and Appliance, Cowboy Maloney, Stereo Advantage, Bernie’s, Fred Meyer, Lack’s Furniture and Famsa stores.
For more information on the entire family of Westinghouse consumer products, please visit www.westinghouse.com.
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