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Plasma TV: Rapidly Increasing Sales

Plasma TV is an important advancement in television technology. The industry has invested in research and development thus producing lower costs. Consequently, plasma TV is quickly becoming more affordable. Sales of plasma TV went down in the beginning of the year 2007. The reason for this drop in sales seems to be related to a lack of availability of plasma TV. Another reason for the drop in plasma TV sales originally had to do with the high price of plasma TV. However, sales increased during the third quarter of 2007. So far in 2008, plasma TV sales have increased by about nine percent. What causes the ups and downs of the plasma TV market? Let's take a look at some of the possible reasons for the fluctuation in plasma TV sales in the last couple of years.

Plasma TV prices have dropped, making them easier for people to afford. The drop in price of plasma TV units has increased the sales of plasma TV in recent months. There are several reasons the prices of plasma TV have dropped. Firstly, the plasma technology has become widely understood and available. Every day more and more manufacturers try to get into the plasma TV business. As more manufacturers are making the product, the competition logically gets more intense and prices go down. Even some manufacturers that were traditionally dedicated to other markets want a piece of the Plasma TV market. Dell, who is trying to enter the market with its 42 inches Plasma TV, is one of those manufacturers. "For now, the key will be how Dell lets consumers know that it is a television vendor. To do this, Dell is adding more and more kiosks, which highlight the "Dell Experience" in malls and kiosks. Dell has put in place 80 of the new kiosks, with four - in Philadelphia, Los Angeles, Houston and Chicago - being converted over to highlight the new "digital home" products, said Mike George, general manager for the consumer business for Dell.

Another company that has seen a boost in its sales thanks to plasma TV is the Japanese manufacturer Matsushita Electric Industrial Company. Panasonic brand products maker Matsushita is the world's top seller of plasma TV, ahead of Samsung SDI Co. and LG Electronics Inc. of South Korea and Japan's Pioneer Corp. in the fast-growing market. Masaaki Fujita, head of Matsushita's plasma TV business, told Reuters he now expects the global market to reach 6.0 million units in 2006, one million above its prior forecast and more than double the 2.7 million units sold in 2004 and 2005. The flat TV market is shared by three technologies, where plasma is one of them. The other two are liquid crystal displays, also called LCD, which are primarily used for TV under 40 inches, and rear-projection technology, used for TV above 50 inches. Everything shows that plasma TV technology is going to become more affordable in the years to come and this only means good news for the consumers.

LCD TV used to lead the market in TV sales. This was primarily because LCD TV used to have a larger selection of screen sizes, larger screens, and lower prices than plasma TV could offer. This is no longer the case. Plasma TV prices have gone down due to more companies offering plasma TV. Plasma TV is also available with larger pictures than were first available. Also, plasma TV is about 20 percent less expensive than their LCD counterparts now.

Another factor that can affect the cost of new technologies and make prices drop down is supply and demand. As more consumers demand the product, more manufacturers will go to the expense of making the product available. At first, it is highly likely that there won't be enough plasma TV to satisfy demand. Given time though, as manufacturers produce more plasma TV, prices will most likely continue to fall. What this really means is that the vigorous competition results in increased affordability for consumers.

In February of 2009, all television viewing will become digital. Many people are in the market for a new TV with digital capabilities for this very reason. Even though the economy is poor in many areas these days, people seem willing to invest in home entertainment. Perhaps this is because they can't afford other forms of entertainment outside the home until the economy improves. Transportation and travelling budget is high, causing people to rethink where they spend their entertainment and vacation money. It costs more just to get back and forth to work these days, not to mention the expense of going out to clubs or movies. And many are cutting back on their vacation budget. Home entertainment costs less, and has become much more important to people than ever before because of the economy. For this reason, many people are looking for good quality home entertainment equipment. Plasma TV excellent picture and large picture size is an excellent choice for people who want great quality entertainment at home.