Question on Home Entertainment:

I've read LED televisions are cheaper to produce and more effective than their LCD counterparts. If that's the case, why are they so expensive? Is it because of low-scale production compared to mass production? Would it be stupid for me to wait until it gets cheap or just buy an LCD set?

Submitted by Reader

Answer:

That's a very good observation. However, do take note it's the edge-lit LED TVs that are cheaper to manufacture since these employ fewer bulbs than their backlit equivalents. The key reason why these LED TVs are commanding a premium is primarily due to product positioning. They are currently marketed as high-end panels featuring the latest bells and whistles including Wi-Fi, IDTV and Web interactivity. Another factor is their ultraslim proposition which unfortunately comes at a price as far as aesthetics is concerned.

You're also spot on regarding lower production level of LED TVs, technological maturity and market share. They will definitely become more affordable just like any new product category over time, but we doubt there'll be a drastic revision this year. You can expect the price to nose dive when most vendors switch over to LED TVs probably in two to three years time. If you're on a budget, just go ahead with a conventional LCD TV.