Flat-Panel Growth Picture Turns Fuzzy

Industry analysts say inventory levels among retailers are normal.

But among TV makers there is a tight supply of 32-inch models, which represent the largest volume category at 37% of total LCD sales, says iSuppli TV analyst Riddhi Patel.

With a relative scarcity of 32-inch TVs, the sales prices are not likely to drop enough to create a big buying spree as in years past, say analysts.

Add to that the economic uncertainty, and analysts and investors wonder about the strength of consumer TV demand.

"At this point it doesn't seem to be impacting purchases of TVs," says DisplaySearch's Gagnon. "That's not to say a slowdown in discretionary spending could affect it."