A recent teardown analysis of three televisions by iSuppli Corp.’s Competitive Manufacturing Cost Assessment Service indicates that liquid crystal display (LCD) TVs have higher bill of material (BOM) costs than plasma and digital light processing (DLP) TVs. The analysis compared Samsung Electronics Co. Ltd.’s LNR-R408DX 40-in. LCD direct-view TV, LG Electronics’ 42PX4RV 42-in. plasma TV, and Samsung’s HL-P5063W 50-in. DLP-based rear-projection television.

According to the analysis, LCD TV’s main circuit boards have a BOM cost of $295, while the plasma TV carries a BOM cost of $279. The DLP TV’s audio/video board sports a BOM cost of only $128. Although BOM costs in the comparison clearly favor the DLP, it is not clear they favor the rear-projection sets in the current cut-throat TV market.

Sales of flat-screen LCD and plasma TV sets continue to rise rapidly, thanks to drastic price cuts and ongoing capacity expansion by suppliers. In addition, consumers are willing to pay a premium for the thinner, lighter profile of the LCD and plasma sets.

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