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Sony says that in order to retain its first place ranking and reach a goal of a 15-18 per cent global market share in 2008, it will reduced the price of its 40 and 32-inch LCD TVs.

In North America the effects of this discounting have already started with the Sony's 32-inch LCD TV now selling for US$699, while its 40-inch LCD TV is selling for US$1,099.

Industry sources say that the price for a 32-inch PDP panel is cheaper than a 32-inch LCD panel which is why brand vendors were willing to launch 32-inch PDP TVs in North America.

Buyers in Australia are yet to see the benefits of any price war between the two LCD behemoths however industry sources suggest that the flow-on effects of any price war between Sony and Samsung should be felt as early as July.