Prices of 40 and 42 in. LCD TV panels declined to an average of $1,125 in July, with some prices falling to as low as $950, according to market research firm iSuppli Corp.

According to iSuppli, the falling prices could result in the availability of 40-/42-inch value-branded LCD-TVs at prices as low as $2,500 by the fourth quarter, boosting sales of these sets during holiday season.

LCD panel suppliers are driving the rapid pricing decline, as they continue to invest heavily to boost output at their fifth-, sixth-, and seventh-generation fabs to produce large-sized panels for television sets. Because of this, panel suppliers are increasingly focusing on the 23- , 26- , 32- , 37- and 40-/42-inch screen sizes, causing market demand to shift more toward those dimensions, iSuppli said.

The firm added price declines are expected to be pronounced for the 40-/42-inch panels as Samsung Electronics? first seventh-generation fab, a joint-venture facility operated with Sony Corp. The average price for 30-/32-inch LCD-TV panels is expected to decrease to $558 by the start of the holiday buying season in October, down from $607 in June, iSuppli noted. The low-end price for 30-/32-inch panels already has dipped to $425 this month, down from $445 in June.