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LG Electronics for example launched its 32-inch PDPs last year chiefly for the China market, as TV vendors turned to the plasma alternative amid a shortage of 32-inch LCD panels.

But with panel makers devoting more of their advanced-generation lines to making 32-inch applications, "supply for the segment has eased sending prices falling not only for 32-inch LCD panels, but also for PDP ones", the report pointed out.

Currently, prices for 32-inch LCD TV panels are about US$320, but "some panel suppliers are reportedly offering quotes as low as US$280 to compete for orders", digitimes said.

As for 32-inch PDP's, prices are currently about US$270, but some suppliers are offering prices as low as US$240, the sources added.

With prices likely to continue dropping, worries about profitability for the 32-inch segment are "deterring some suppliers from joining the competition. Samsung SDI, which was said to be ready to produce 32-inch PDPs in July, has abandoned the plans", the report claimed.