Thursday, 13 July, 2006
Price drop in HDTV sets is nearing bottom
High-definition television makers are ready to welcome late adopters into the fold.
The industry is hoping that with prices stabilising after years of dramatic price cuts, thrifty shoppers nervous about overpaying may be ready to open their wallets.
"We’re hitting a point where they can’t keep dropping at the 25 and 30 percent rates you’ve been seeing,” said Rosemary Abowd, vice president at market research firm Pacific Media. “Because there’s not that much margin left in the picture.”
For example, in the fourth quarter of 2004, the average 42-inch high-definition plasma TV cost $4,446, according to another research outlet, DisplaySearch. By fourth quarter 2005, that average price had dropped to $2,611, a 41.3% decline.
From the end of 2005 to the end of 2006, the average price of a 42-inch HD plasma display is expected to dip 22.9%, to $2,014. In dollar terms, a plasma TV shopper at the end of 2004 would have saved $1,835 by waiting one more year.
Comments
| 17 July, 2006 - 10:06
Yeah, of course the price is bottoming out… not!
Three things will continue to happen, in my opinion:
Firstly, prices will continue to fall, although not at the rates of 30% admittidly.
Secondly, screen sizes will continue to grow (100” TV anybody?)
Thirdly, technology will evolve, improve and be superseded even more quickly than before.
I think JVC are just bringing another new HD technology to the market called HD-ILA to the market in 56” and 70” screens.
This type of thing will go round and round and round, forcing prices down.
Consumers have a hard time buying into a technology that is outdone one month down the line.
That is the problem with the current pace of change, but then we want innovation and the best possible things for our money. I suppose that is the price we have to pay.