Smarthouse News is reporting that LCD TV panel makers such as LG.Philips LCD and Samsung are hinting that 37" LCD TV panel prices will drop to as low as $600 by September with retail prices of less than $1000. The article says that the guys focusing on 37" is battling lower prices of 40".
Just to make it clear: Samsung does not make 37" LCD TV panels. Samsung does not know as well as LG.Philips LCD what the prices will be since they do not make them. As long as that's clear, let's move on. Sony and Samsung are the two major brands that make 40" LCD TVs. That's because the two of them spent billions in a joint venture called S-LCD, a company based in South Korea. The G7 fab is optimized for 40" production. S-LCD is the only fab in the world that is optimized for 40". All of the other G6 and higher fabs are better sized to produce 37" or 42". S-LCD knows this and they need to capture market share now before 3 or 4 fabs start pumping out 37" and 42" panels en mass and flood the market with these sizes. I'll put my money down on the 37"/42" guys because, usually, the guy who is bigger wins and in this case, though S-LCD is big, if you put all the rest of the guys together, they are much bigger.
One more thing: A $600 panel price is not going to get you a $1000 TV set price. It is impossible, even if you sold it direct. First of all a 37" is fairly large and so transportation itself will be costing you a bit. The TV electronics, the distributor margins, retail margins, etc. etc. will not get you there. The cheapest a $600 panel price can get you is about $1,499, is my guess.
Source: Smarthouse News