According to display market research and consulting firm DisplaySearch, average selling prices for TVs are expected to be down in Q4 2009 for the first time since the flat-panel TV transition began, and TV manufacturers are developing a wide variety of design elements and performance features to differentiate products and slow price declines. DisplaySearch has initiated a new research service, the "Quarterly TV Design and Features Report," to analyze and forecast these trends.

A key aspect in development of the above-mentioned differentiation is the interplay of performance, capabilities, cost, and power consumption. Most features and performance improvements carry cost premiums and increased power consumption, but intelligent design and utilization of new technologies may enable simultaneous improvements. Key examples of this trend are LED backlights and 240Hz frame rate operation in LCD TVs.

DisplaySearch's research indicates that LED backlighting and 240Hz LCDs will serve as an enabling technology for new feature developments in TVs in 2010, specifically for 3-D TVs, an area of intense interest to TV manufacturers. DisplaySearch forecasts that 1.2 million 3-D-capable TVs will be shipped in 2010, with growth to 15.6 million sets in 2013.

"The dilemma facing TV set manufacturers is whether to rush in with cheap solutions," said Paul Gray, Director of TV Electronics Research for DisplaySearch. ?If they skimp on processing and displays, performance will be disappointing and consumers will lose interest. While everyone is looking for a solution for the industry's mediocre margins, technology alone cannot solve the economics, and it is important to take the time to develop the 3-D proposition thoroughly."

Power consumption is also becoming an increasingly important issue in consumer electronics, with energy regulations increasing in all regions -- most recently in California. LED backlighting will continue to serve as a critical enabler of reduced power consumption. In the "Q4'09 Quarterly TV Design and Features Report," energy regulations are examined with detailed descriptions of national regulations and 'point of sale' labeling policies.

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