An oversupply of LCD TV panels and weak demand have conspired to push prices down just in time for the holiday shopping season, electronics research firms say.

On Black Friday, the day after Thanksgiving, prices on 32-inch LCD sets will drop to an average between $249 and $299 and sell for as low as $199, CNNMoney reported.

On Friday, a 32-inch LG LCD set was priced at $399 at Best Buy.com and $408, plus shipping, on Amazon. The average price for a 32-inch LCD set in 2005 was $1,700, said Paul Gagnon, director of North American TV market research for research firm DisplaySearch.

Gagnon attributed the price drop to an overshipment of (TV) panels and soft demand in the U.S. for TV sets this year.

But prices on consumer electronics traditionally fall over time, cautioned Troy Hanson, owner of Hanson Audio Video, 3140 Far Hills Ave. The most dramatic price falls will be seen among smaller sets with older technology, Hanson said.

Scott Morris, a spokesman for the Best Buy electronics store chain, said, “It is true TV demand has been less than the industry has expected, which would lead you to the conclusion that there is some inventory building.”