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Time for That LCD TV?

A recent article from the Chicago Tribune reported “an enormous surplus of LCD panels that has accumulated over the first nine months of the year.” This surplus arose partly because prices of flat-screen TVs had not fallen throughout much of the year-and the quantity demanded had accordingly been constant. With this overhang of panels, the price of TVs will probably fall substantially in the next two months-while sales of LCD TVs will skyrocket.
This holiday season is thus a good time to buy a flat-screen TV, but many people prefer the newer LED technology, which is a substitute for LCD TVs, and whose price fell rapidly earlier this year. That preference will keep sales of LCD TVs from rising as much as would have occurred last year. And I would bet that gadget lovers (like me) and higher-income households will not be swayed by the tumbling LCD prices. They will either buy new LEDs now or hold out for their prices to fall further.