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LCD TV Prices See 22% Price Reductions Over Black Friday

El Segundo, Calif. – U.S. retailers during the week of Black
Friday cut prices on LCD TV models by an average of 22 percent from pricing
immediately prior to the event, causing sales to rise by 6 percent from a year
earlier, according to a preliminary estimate released Monday by iSuppli.

“Defying some pundits’ expectations, U.S. retailers this year
were able to offer their customary Black
Friday promotional deals for LCD TVs
, which represent a critical factor in
driving annual sales growth,” stated Tina Tseng, analyst for iSuppli.

In large part due to the deals offered on and before Black
Friday, the fourth quarter is typically the strongest period of the year for
the U.S. LCD TV market. An estimated 28.7 percent of 2009 LCD TV shipments in
the United States and Canada
are projected to occur in the fourth quarter. iSuppli predicted LCD TV
shipments in the United States
and Canada
will rise by 15.3 percent in the fourth quarter of 2009, compared with the same
period in 2008.

U.S. LCD TV sales are preliminarily estimated to have risen
by only a low-single percentage point on Black Friday 2009, compared with 2008.

However, many retailers offered special Black Friday deals
starting on Thanksgiving Day or throughout the seven-day period from Nov. 21-27.
For the seven days, LCD TV sales are estimated to have risen by as much as 6
percent compared with a year earlier, according to a preliminary estimate from
iSuppli.

The most common set offered via Black Friday promotions this
year was the 32-inch high-definition LCD TV.

The report stated average U.S. Black Friday promotional
pricing for 32-inch LCD TVs declined to $369, down 24.7 percent from $490
before the event.

The biggest average price reduction was for 19-inch LCD TVs,
at 36.8 percent, followed by 26-inch sets at 34.9 percent.

Average U.S. Black Friday promotional pricing for 40-inch LCD
TVs declined to $577, down 23.3 percent from $752 before the event.

Price reductions for larger LCD TVs were more modest, with
42-inch sets experiencing a 7.3 percent decline and 46-inch sets dipping by 7.2
percent.

“In the 40-inch and larger screen sizes, better-featured
models were offered for Black Friday deals,” Tseng said. “The majority of Black
Friday promotions were for FullHD, i.e., 1080p-resolution (progressive-scan)
models. Models with 120Hz refresh rates also were found in the 42-, 46- and
55-inch screen sizes.”

“Premium LCD TV brands, such as Samsung, LG and Sony, led the
way in offering aggressive pricing deals on Black Friday,” Tseng said. “Because
these companies sell their sets at higher price points than the value brands
do, they are able to make steeper cuts during Black Friday. This translates to
greater dollar savings for consumers, making the deals attractive.”

Sony was singled out for offering LCD TV sets bundled with
other products as special Black Friday deals.

“Sony was very aggressive with bundled deals,” stated Riddhi
Patel, iSuppli television systems principal analyst. “They bundled LCD TVs with
items such as PlayStation3 video game consoles and Blu-ray players. Other
brands offered bundles that included wall mounts and audio bars.”

Some retailers also offered special online deals that include
free shipping and no taxes.

iSuppli Table Average U.S. Retail Pricing for LCD-TVs Before and During Black Friday Week (Pricing in U.S. Dollars) Display Size in Inches

(Source: iSuppli Corp. November 2009)

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