Vizio's success this year is an exception to iSuppli's claims that picture quality, not price, is the most important factor for a consumer in purchasing an LCD TV.

U.S: New research from market analysis firm, iSuppli has found that the price difference between LCD TVs sold by premium brands and value brands is narrowing. 

The lowest price in the U.S. in April for a 40-inch premium-branded LCD TV was $US900, while the lowest price for the same type of TV offered by a value brand was $US615. Comparable 42-inch premium and value brand sets were priced at $US955 and $US798 respectively. 

“The rising popularity and growing consumer comfort with value brands like US-based Vizio is prompting premium competitors to offer cheaper LCD TV models in the 40-inch and larger sizes,” principal analyst, television for iSuppli, Riddhi Patel said. 

But iSuppli maintains that picture quality, not price, is the most important factor for a consumer in purchasing an LCD TV. “Brand recognition is an important asset for any company,” he added. “Who would choose a nameless Taiwanese or Chinese brand over a Sony Bravia or a Samsung?” 

Exceptions to the rule 
However Vizio’s success, taking number one position for LCD TV in the first quarter for the U.S and Canadian markets, is proof that there are exceptions to this rule. 

Vizio’s lowest average selling price for a 42-inch LCD TV was $US850. While Samsung and Sony’s comparable LCD TVs sold for $US1000 and $US1090 respectively. 

“The premium brand dual-pronged strategy of offering high and low-end models can help them to maintain market share amid the rise of Vizio,” Patel Said. 

iSuppli expects average LCD TV selling prices in the U.S. to decline slightly in the coming months.