Or they aren't buying the more bulky rear projection sets? I believe DLP is losing ground quickly for various reasons:
- They are protecting their 3-chip market artificially. What I mean by this is that I can buy three single-chip DLP projectors for a grand total of $3000. But I cannot purchase a single 3-chip DLP projector for under $15,000.
- DLP cannot really get any smaller or more compact in size since it is not a silicon-based technology like LCD panels. This reduces its usability in portable products
- DLP is gradually leveling off in its capabilities (the last revision for example didn't do much to improve upon its former version) while LCD technology continues to advance in leaps and bounds, all but catching up in terms of black levels and interpixel spacing.
I don't want to appear biased, but DLP needs to take advantage of some of the opportunities it has instead of positioning itself as high-end. They are apparently running the Sony play book and it's finally hurting them.
A 3-chip DLP projector with lens shift under $5000 would rule the market right now as would an LED-driven model that provided a way to lower the cost of replacement bulbs.
In addition, rear projection is simply going to all but die off eventually as flat panel prices continue to fall. In rear projection DLP absolutely dominates, but the form factor is becoming less relevant as 50-inch prices plummet.