Bank Of America Predicts An LCD TV Price War ending with a Price Cute

Lets start with a great rumor, that Sony will be selling a 32-inch LCD set in Wal-mart stores for $699 this spring, with a possible price decrease to $648 if a rumored Wal-mart discount is included. This is the first time Sony will sell a 32-inch set for less than $700 and is part of the electronic giant’s strategy to bump mid-range Japanese brands such as Vizio and Olevia down a notch. With a slow US economy, the Bank of America is predicting that this is the first step in an all-out price war that will see LCD TV prices drop drastically. But not so fast.

All of the typical 32-inch models already sold in Wal-mart are already sold below the $699 price tag of the 720p Sony, plus LCD panel supply is going to be tight in 2008 with demand most likely exceeding supply. This doesn’t bode well for lower prices. It does move Wal-mart one step closer to being a dangerous competitor to the likes of Best Buy and Circuit City, especially as the digital TV transition draws closer and people flock to upgrade to a digital set. This could mean a price war down the line, but we don’t see it happening in 2008.

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