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Retailers concentrating on high end HDTVs

Written by Rich Fiscus (Google+) @ 25 Aug 2007 6:30 User comments (8)

Retailers concentrating on high end HDTVs A push to sell more expensive brand name models is currently dominating shelves at a store near you.
As interest in lower priced LCD televisions as an alternative to expensive plasma models has risen, profit per unit sold has fallen for retailers.

The problem with this strategy is that consumers are primarily buying because prices have come down a substantial amount. With prices of higher end models currently in stores matching prices of the low cost alternative consumers have been watching, the Christmas buying season may not see increased profits.

The price promotions by the minor makers propelled Vizio from the No. 4 L.C.D. television maker in the American market in the first quarter of 2007 to the best-selling maker in the second quarter of 2007. “Half the reason that consumers buy our sets is because of lower prices,” said William Wang, Vizio’s chief executive. “But our goal was never to compete on price only. We have a great product.”

Perhaps as worrisome to retailers are signs that growth is slowing, said Gregory Melich, a retail-sector analyst at Morgan Stanley. “For the past few months, growth in the total TV market has been zero or negative, because demand is not there at these price points,” he said.

Morgan Stanley research indicates that two-thirds of American households will not buy an HDTV until the price of a 37-inch or larger set drops below $600. The price of a 37-inch L.C.D. set averaged about $1,200 in June, according to iSuppli. “When the price goes to $800, 17 million more Americans will consider buying one,” Mr. Melich said.

Source: New York Times

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8 user comments

125.8.2007 7:43

Vizio da BOMB!

225.8.2007 12:29

I'm still waiting for more price drops.

325.8.2007 13:24

Originally posted by albino92:
I'm still waiting for more price drops.
As am I.

426.8.2007 9:17

i dont think you have to have a hd tv when the analog broadcast in 2009 shuts off . just a digatal reciver, will play regular tv . seems like they are trying to make people think they have got to have a hd tv.they dont.

526.8.2007 17:07

Originally posted by tleewade:
i dont think you have to have a hd tv when the analog broadcast in 2009 shuts off . just a digatal reciver, will play regular tv . seems like they are trying to make people think they have got to have a hd tv.they dont.
Yes that is true, but in 2009 hi def should be the replacement for standard def and you might want a hdtv.

627.8.2007 11:28

Quote:
They will see more name-brand models along the wall and a lot fewer of the second-tier brands that also happen to carry lower price tags... Prices will continue to fall, industry analysts say, because the retailers are powerless to prevent the declines. Not only is retail competition fierce...
They can push whatever they want. The consumers will BUY what they want.

Quote:
They may also find themselves accosted by sales employees pushing expensive but nonessential services like extended warranties and professional installation.
Is this something new?

Quote:
I'm still waiting for more price drops.
I'm waiting for my rear-projection TV to die.

Quote:
i dont think you have to have a hd tv when the analog broadcast in 2009 shuts off . just a digatal reciver...
Most people don't watch "broadcast". And,I don't think analog cable is going to be "shut-off".
This message has been edited since its posting. Latest edit was made on 27 Aug 2007 @ 11:31

71.9.2007 0:41

I saw a Sony flat screen TV and monitor in one today for A$1000 it was great i want to buy it and it has everything you would ever want in a TV/Monitor. Prices are dropping to be reasonable now. This is the time to go in.

81.9.2007 18:23

The holiday season should be the time to go in because there will be even lower prices, and if you want to wait another 2 monthes for the superbowl there will be even better prices.

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