The Plasma TV technology has improved a lot in the recent past and the defect rates on plasma displays and LCDs have come down a lot.
- the first generation of plasma displays had 7% defect rate within first 3 years of operation.
- the second generation had 4% defect rate
- the 3rd generation had only 2% defect rate within first 3 years of operation.
Unlike industry leaders like Sony, Samsung and LG, newer manufacturers of plasma and LCD fabrication will have higher defect rates that can be as high as 5% defect rate within first 3 years of operation. This higher defect rate offsets some of the savings from the lower prices on their Plasma TVs and LCD TVs.
Many people have asked us if its worth it to buy extended plasma TV warranties. Yes, its worth it because the average repair cost of an LCD TV is around $750 while the average repair cost for a plasma TV is about $1500 (almost double) because the spare parts are expensive and the authorized dealers are very few and they can charge high prices for spare parts.
But once the manufacturer’s warranty period is over, the service fee (labor fee) can be as high as $500 (exlcuding spare part costs!). The service centers look forward to to these money making opportunities. If you compare this repair cost with about $150-$175 paid for extended Plasma TV warranty of a few years, you will see that buying extended plasma TV warranty makes sense.