In 2004, DLP chip sales were $900 million, quite a bit more than $500 million from the year before. Sales declined 8% in 2005 due to over-ordering and inventory build-up. DLP chips can go up to 1920 x 1080 in resolution and can be integrated into a housing that’s only 9.5″ deep at about 40″, about 1/2 the depth of most DLP units out there. That would give it some needed help to compete against LCD and plasma. Sony’s 40″ LCD TVs, in addition to Samsung’s 40″ LCD TVs, have been super competitive in terms of price, design and simple desirability. DLP sets are much cheaper though with about a $50 per diagonal inch compared to $169 for LCD and $99 for plasma in January 2005. A year later in January 2006, LCD TV’s price per inch was $90 and plasma was $70.
TI is shrinking the mirror arrays in the 720p DLP chips from 0.55″ to 0.45″, reducing the cost and hopefully the cost of the DLP TV set. The smaller chips also require smaller optical projection components, reducing the component cost of the DLP TV. Expect 42″ DLP TVs to cost less than $1500 soon. I’m waiting for that magic price of $999 for a 42″ TV that can do Full HD (1920 x 1080). Whoever gets to that price first will get a sale.
Source: Electronic Business