Hi! Thanks for the question.
I will answer the question according to the elements you stated in
determining the economics of an electronic product like the Plasma TV.
Thank you for providing the necessary detail to answer your question.
I will just provide small snippets from the articles I will cite but I
highly recommend that you read them in their entirety to get a better
coverage.
Plasma TV
a. Product Analysis
History:
“The concept for plasma display panels was first conceived in July
1964 at the University of Illinois (USA). The first displays were
nothing more than points of light created in laboratory experiments.
From then on, the technology was developed and improved and by the
late 60's, it had become advanced enough to allow the scientists to
construct geometric shapes. Further development was limited,
scientists were restricted by the materials that were available, so
screens were small, and image quality was low. Today the progression
in high speed digital processing, materials and advance manufacturing
technology, has made full colour, bright plasma displays possible.
Once what was only thought of as Science Fiction is now available and
ready to use in a host of new and exciting ways.”
Product Dimensions:
“The majority of plasma TVs on the market have 42" and 50" screens,
though there are a couple of monitors now with 61" sizes.”
“Most plasma TVs are manufactured in the widescreen 16:9 aspect
ratio.This wide view lends itself to better DVD viewing because it
displays the motion picture in its originally intended aspect ratio
format.”
Format Compatibility: NTSC, PAL, and SECAM.
"Plasma TV Buying Tips Large FAQ”
http://www.plasmatvbuyingguide.com/bigfaq.html
“Unlike traditional cathode-ray tube (CRT) technology, which uses an
electron beam to excite the colored phosphors that produce an image,
plasma panels rely on ultraviolet light emitted by highly ionized gas
to activate the phosphors. In this plasma state, the gas has a roughly
equal number of positive ions and free electrons, making it an
excellent conductor of electricity. Each panel consists of a few
million tiny glass cells that contain the gas along with a red, green,
or blue phosphor. Three cells, one for each color, combine to form one
pixel, or picture element.”
“A single panel can contain a million or more pixels, and screen sizes
range from 32 to 63 inches (diagonal). Smaller sizes are feasible, and
manufacturers are also experimenting with displays up to 72 inches.
Plasma TVs are usually widescreen, with the 16:9 aspect ratio used in
high-definition TV (HDTV), but our shopping guide at the end of this
article lists one model with a standard-shape 4:3 panel.”
“Plasma”
http://www.yana-online.com/plasma.html
“Actually the plasma displays on the market today are not really a
TV's, They are video monitors. They do not contain a television tuner,
so they cannot pluck a television signal out of the air and create a
picture. Plasma monitors were designed with high-definition television
in mind.”
“Despite industry claims that plasmas may last as long as
rear-projection TVs (about 10 to 12 years on average use in the home),
the truth is nobody really knows for sure because plasma TVs haven't
been around long enough to have a real-life record.”
“KrystalVision, Plasma TV - Plasma Overview”
http://www.krystalvision.net/servlet/plasma_technology
----------
b. Supply
“Helping drive the growth are new or expanded manufacturing
facilities. For example, Japanese electronics giant NEC Corp. doubled
the capacity of its factory in Japan this year, reaching 300,000 to
400,000 plasma panels. And it plans to double it again in 2003,
officials said.”
“Meanwhile, plants are becoming far more efficient, slashing the cost
per unit. The average factory had to scrap or rework 85 percent of the
panels produced three years ago, but now rejects only 10 percent, said
Tom Edwards, senior analyst at NPD Techworld, a research firm.”
“Picture is clear for plasma TV industry”
http://www.cmonitor.com/stories/market/bizstori2002/1226flatscreen_2002.shtml
------------
c. Demand
“About 800,000 plasma panels will be shipped this year around the
world, said Mark McConnaughey, senior vice president of the advanced
technology group of Viewsonic Corp. of Walnut, Calif.”
“Picture is clear for plasma TV industry”
http://www.cmonitor.com/stories/market/bizstori2002/1226flatscreen_2002.shtml
“Statistics show that the world's PDP demand would climb to 830,000
units in 2002, up from 450,000 units in 2001. Such sales are expected
to jump to 1.4 million units in 2003.”
“These growth rates are significant when the price reductions, both
current and projected, are taken into consideration.”
“KrystalVision, Plasma TV - Plasma Overview”
http://www.krystalvision.net/servlet/plasma_technology
----------
d. Price Determination
“A couple of factors contribute to the high price of plasma. The first
is the difficulty of making the glass — including those millions of
tiny cells — for plasma panels, which is done by only a handful of
companies, including Panasonic, Pioneer, Fujitsu, Hitachi, and NEC. In
fact, the process is so tricky that today’s manufacturing plants
recycle 20% to 50% of their finished panels because the delicate glass
is flawed in some way, according to Matt Dever, vice president of
product planning for Pioneer.”
“The second has to do with economies of scale. The specialized
components needed to make plasma TVs are expensive because relatively
few are made. This leads the set manufacturers to charge high prices
to recoup their costs, which means relatively few people can afford to
buy plasma sets. Low sales numbers give the component makers little
incentive to ramp up production to make more components available at
lower prices.”
“Plasma”
http://www.yana-online.com/plasma.html
“As competition has heated up during the last four years, prices have
fallen more than 50 percent. According to NPD Techworld, the average
price of a plasma display sold in the United States dropped from
$12,700 in January 1999 to $6,100 in October 2002.”
“Prices will have to drop significantly more, however, to attract
masses of buyers, said Tamaryn Pratt, an analyst at Quixel Research in
New York. A Quixel survey found that more than 70 percent of consumers
interviewed want screens larger than 40 inches but they quickly lose
interest in sets that cost more than $2,000.”
“Picture is clear for plasma TV industry”
http://www.cmonitor.com/stories/market/bizstori2002/1226flatscreen_2002.shtml
-----------
Market Trends
“The best markets for plasma screens have been in Asia, and about half
of the sets have gone to businesses instead of homes. Total U.S. sales
could reach 115,000 units this year, said Ed Wolff, vice president of
Panasonic's display group. That is a tiny percentage of the 25 million
sets sold annually in the United States, but more than double the
amount that Quixel Research estimates were sold nationally in 2001.”
“Picture is clear for plasma TV industry”
http://www.cmonitor.com/stories/market/bizstori2002/1226flatscreen_2002.shtml
Plasma TV Market Trends
http://slate.msn.com/id/2067153/sidebar/2067137/
“The global rear-projection-TV market, in the $1,000 to $3,000 price
range, grew to more than 3 million units in 2001 and is expected to
expand to 3.4 million units in 2002. In recent months, 40"-plasma-TV
prices have fallen to the sub-$4,000 range. The global plasma-TV
market is expected to grow to more than 500,000 units in 2002, up from
314,000 units in 2001.”
“TV makers battle for high-end consumer pocketbook”
http://www.infocomm.org/index.cfm?objectID=3ECDCD01-1B4E-4244-A3EA5C18055CF3A6
Search terms used:
“Plasma TV” market “sales data”
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Easterangel-ga
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