Panasonic is running ads extolling the virtues of plasma sets over the L.C.D. variety, although the company produces both kinds of sets. The world's leading seller of plasma televisions offered picture comparisons for journalists at electronics shows and launched an aggressive holiday ad compaign outlining six reasons to buy plasma. Sony has initiated an equal and opposite marketing strategy citing reasons to prefer L.C.D sets over plasma, including the absence of a fluorescent glow from L.C. D. televisions. Although Panasonic sells L.C.Ds in smaller sizes, the company suggests buying plasma sets for more life-like images. L.C.Ds and plasma sets are both quickly seizing market share from traditional sets; 2006 was the first year that L.C.D. sales were higher than those of old-fashioned TVs. L.C.D sets grabbed 49% market share up from 26% in the previous year, and plasma's market share doubled in 2006 from 5% to 10%.
• Sources: New York Times
• Related commentary: LCD Revenues Down in 2006 Despite Unit Sales Being Up 29%, Improving Q3 & Q4 Outlook for LCD Makers, LCD Makers in Collusion? , Flat Panel Makers to Avoid Production Cuts Amid Investigation.
• Potentially impacted stocks and ETFs: Sony (NYSE:SNE), Matsushita Electronics Industria (MC-OLD), Koninklijke Philips Electronics NV (NYSE:PHG), Corning (NYSE:GLW)
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