Vizio overtook Samsung as the leader in the North American LCD TV market, according to iSuppli.

Vizio, which dropped out of the plasma TV market, increased its share of the market from 13.8 percent in the fourth quarter to 21.6 percent, while Samsung went from a 16.5 percent share to a 19.9 percent share in the first quarter of 2009.

Sony (16.6 percent), LG (10.7 percent) and Sharp (9.4 percent) rounded out the top five in the LCD market.

So why the change? According to iSuppli, its because consumers are looking to save money during the recession.

“Due to its aggressive pricing, Vizio for some time has maintained its position as North America’s top-selling LCD-TV value brand,” says iSuppli analyst Riddhi Patel.

“However, since the onset of the economic downturn, Vizio’s share has risen dramatically. With budgets becoming increasingly tight, consumers are finding the company’s inexpensive sets more alluring.”

iSuppli says Vizio’s 40- and 42-inch LCDs are roughly $150-$400 less than Sony and Samsung sets. Vizio has also been able to stay competitive by adding new features to its TVs, including 120Hz technology.

It also doesn’t hurt that Vizio sells its TVs in high-powered retail outlets. But everything appears to be paying off. Vizio had the largest increase in market share and shipments among the top five brands.

Overall, North American LCD TV shipments fell 23.2 percent from 8.1 million in the fourth quarter to 6.3 million in the first quarter.