An intense price over high definition televisions is about to break out this weekend and analysts are saying it's going to look like last year's 2009's holiday price war look like kids' play.
The opening salvo comes this weekend when Wal-Mart chops prices on its stock of certain flat-panel TVs starting at 8 a.m. Saturday. The sale will last for two days, or as long as supplies last.
The nation's largest retailer says a 26-inch Vizio LED HDTV, which was selling most recently for $298, will be cut to $198. A 32-inch Vizio LCD HDTV will drop from $348 to $298; and a 55-inch Vizio LCD HDTV TV that was selling for $1,098 will be $898.
Sharp and LG Electronics, the companies that make huge flat-screen televisions and LCD panel components, both had alerted investors last week that demand is dropping in the U.S. and other developed markets. And analysts expect TV sales to heat up this holiday season because of a growing glut.
A recent report from iSuppli, which tracks shipments of LCD panels and flat-screen televisions, showed the number of LCD panels for TVs shipped in April through June far outstripped the number of TVs that were sold, thus causing an over-supply.
Sharp, LG and Vizio's aren't the only brands slashing prices.
Sony, Panasonic and Samsung all predicted severe competition for this holiday season. Analysts predict prices on the most popular TV brands will declines 25% and more this year.
TV makers were hoping that pricier LED TVs with brighter screens or 3-D sets would keep prices from falling, but that isn't happening. So far, shoppers in the U.S. aren't willing to pay extra for higher quality sets. Many of them are seeing what's happening with standard HD sets and therefore plan to wait until something similar hits the LED and 3-D models.
