TV prices expected to reach new lows by end of holiday season
If you’ve been holding off on upgrading to one of those fancy 3D HDTVs–or an HDTV of any sort–right about now and on into next year looks to be the best opportunity to finally take the plunge.
According to NPD DisplaySearch’s forecast model for TV prices, 3D LCD HDTVs up to 46″ are expected to be below $1,000 for the first time throughout the remainder of the holiday season and on into early next year. Prices on standard HDTVs, including plasma, are all expected to fall below $1,000 as well, with 40″ and 42″ CCFL 2D LCD TVs projected to be at or below $500.
The firm cites lower-than-expected demand for HDTVs and excess production capacity throughout the last quarter of 2011 as the reason for the decline in HDTV prices across the board.
“The flat panel TV industry is now in a very advanced state of maturity, and the rapid cost reductions seen in the mid-2000s due to enormous investments in panel production capacity have slowed considerably. Despite this, consumers still expect rapid continuous retail price reductions.” noted Paul Gagnon, NPD DisplaySearch Director of North America TV Market Research.
“In an effort to offer more value and entice consumers to focus less on price as a motivating factor, a number of new technologies, like LED backlights, higher frame rates and even 3D, were introduced to boost demand without resorting to price-driven tactics.”
Despite the industry’s best efforts to attract consumers to 3D HDTVs and LED HDTVs with high refresh rates, the public doesn’t seem to be biting. NPD estimates that only 8 percent of TVs that are sold are 3D-capable TVs, and LED HDTVs aren’t performing that much better.
The firm expects prices to fall further by the first half of 2012, but price fluctuations are expected to stabilize as manufacturers address excess production capacity.