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Circuit City (CC) has been holding meetings with the Street recently in which it is warning that average selling prices for flat-panel televisions are falling faster than the company had expected.

J.P. Morgan’s Stephen Chick noted Tuesday morning that he met with Circuit City management Monday, and that they indicated the faster-than-expected drop in flat panel pricing; Dan Wewer, an analyst at Raymond James, wrote a note which likewise reported that average selling prices are declining at an accelerating rate, and quicker than planned. Wewer notes that the company’s margins should not be at risk due to price protection programs offered by the manufacturers and “favorable attachment sales” for mounting brackets, cables, audio systems and other peripherals.

Wewer says that most of the price erosion stems from aggressive competition between Sony (NYSE:SNE), Sharp and Panasonic (MC-OLD).

Source: Circuit City: Flat Panel TV Prices Falling Even Faster Than Expected