Flat screen TVs are becoming cheaper and demand in the 40 to 44-inch range is booming. This market is dominated by plasma displays but they are losing ground as LCD displays are catching up.
"Plasma display makers will do their best to cut costs and fend them off, but LCD makers are investing aggressively to go after the big-inch TVs and should be able to grab a good slice of that market, especially at 40 inches and just above," Hisakazu Torii, director of TV market research at DisplaySearch.
Companies such as Japan's Matsushita Electric Industrial and South Korea's LG Electronics have preferred to use plasma screens for 40-inch or larger TV sets since they are easier to mass produce at larger sizes, giving plasma a cost advantage over LCDs.
Plasma TV sets use tiny pockets of gases to display images, while LCDs use crystals sandwiched between glass. LCDs last longer than plasma screens but are not as bright, while plasma has a wider viewing angle but consumes more power.