ECON ARTICLE Essay Example | Topics and Well Written Essays - 750 words

ECON ARTICLE - Essay display caseThe liquid crystal display-panel manufactures had been producing flat inters faster than the TV industry could absorb and thus were forced to cut their wholesale prices by as much as 30%, which lowered their profits. Now they demand that TV makers, distributors, and retailers should cut their beach in order to generate more sales. On the other hand retailers complain that their margins are not really much beca utilization the broad(prenominal) cost of storefront display and marketing TVs does not leave high profits for them. In addition, they have to invest heavily in training sales personnel also. They nevertheless have a lot of money tied up in inventories of the costly TVs. Moreover, the average sell price of flat screen TVs have dwindled to about $3000 from $5000 two years ago.The LCD panel makers, meanwhile, reflection stiff competitive pressure from other screen technologies such as Plasma and High small town Projection TVs. Since Septem ber 2004, plasma TV prices have plummeted and contributed to high market share gains over LCD sets.Retailers of plasma screen also apply a similar margin to plasma sets as well. save plasma screen factories are not as costly to erect as LCD screen plants, and there is less competition among plasma screen makers, so the profit squeeze is not as bad. A slightly encouraging trend that the flat TV producers can find relief in is that the low price is likely to increase the sales volume. Though there is a gradual return in prices and an increase in sales of flat screen TVs, most analysts predict that it wont take off as quickly as flat screen computer monitors. Monitors primarily world used for commercial purposes, the purchasing has been driven by businesses while TVs are chiefly purchased for domestic use by consumers. These customers rather tend to be more sensitive to price than any other consideration. referable to increased production, the supply of flat TVs has