According to the US TV Price and Specification Tracking Report of IHS iSuppli, despite the inventory carried over from the previous year, due to the high-end features of these stocks, the price of flat-panel TVs in the United States rose for the third consecutive month in February.
The average selling price of flat-panel TVs, including LCDs and plasma TVs, reached US$1,177.20 in February, up 0.6% from January’s US$1,110.42. TV prices have risen steadily since the last drop in November. The February price is also the highest level in at least 12 months, as shown in the figure.
Although new products are expected to enter the market by the end of the first quarter, TV prices are still rising. New TVs usually enter the US market at the end of the first quarter. Fortunately, most of the remaining inventory last year is still in the retail channel. Most of the unsold models are large-scale high-end products, representing the latest technological trends. Therefore, IHS believes that their prices have fallen less than the low-end models, maintaining the stability of the overall market average price.
The higher-end TV specifications in the current channel include LED backlight technology, 1080p Full HD and 120Hz, as well as Internet-enabled functions that allow TVs to access media content via the Web. High-end TVs may or may not have 3D capabilities, but TVs with 3D capabilities are more price-maintaining. For example, the average price of 3D LCD TVs rose by 4.2% from the previous month to US$2,418.
On the other hand, TVs lacking high-end features offer discounts, and even high-end branded TVs currently sold as basic models are discounted because of the lack of advanced features. This type of TV includes a refresh rate of less than 50 inches and a frequency of 60Hz. It does not have internet capabilities and uses CCFL backlighting. The price of 40-inch TVs fell to 590 US dollars, compared to 968 US dollars a year ago.
In addition to high-end specifications, other positive factors in the TV market have also helped stabilize prices. For example, the panel maker's LCD plant continues to maintain a low capacity utilization rate, avoiding additional inventory in the market leading to price declines. Sales in the two major markets, China and the United States, were also better than expected, especially in the weeks leading up to the NFL Finals in early February.
Among retailers, the price change in February was less than 3% from January, and the majority tends to rise. The only exceptions are major shopping malls such as Costco and Wal-Mart. The price of 50-inch and larger TVs has fallen. This is the strategy for these stores to clear their inventory. In contrast, the average sales price of regional and online shopping malls rose, as the holiday season helped them sell many small and low-profile models.
TV prices are expected to remain stable in the coming months, with no signs of slowing down, especially with new models of 39, 43, 48 and 50 inches this year. A new TV from Vizio, California, will also enter the market with an aspect ratio of 21:9, which is different from the current common 16:9. Samsung Electronics and LG TV will launch the first TVs with OLED screens, and may also be available later this year.
While prices are still an important factor in attracting buyers and a major factor in promoting television sales, new television and advanced features may continue to inject vitality into the TV market. These TVs provide consumers with the desired functions and functions that suppliers want to promote.
The average selling price of flat-panel TVs, including LCDs and plasma TVs, reached US$1,177.20 in February, up 0.6% from January’s US$1,110.42. TV prices have risen steadily since the last drop in November. The February price is also the highest level in at least 12 months, as shown in the figure.
Although new products are expected to enter the market by the end of the first quarter, TV prices are still rising. New TVs usually enter the US market at the end of the first quarter. Fortunately, most of the remaining inventory last year is still in the retail channel. Most of the unsold models are large-scale high-end products, representing the latest technological trends. Therefore, IHS believes that their prices have fallen less than the low-end models, maintaining the stability of the overall market average price.
The higher-end TV specifications in the current channel include LED backlight technology, 1080p Full HD and 120Hz, as well as Internet-enabled functions that allow TVs to access media content via the Web. High-end TVs may or may not have 3D capabilities, but TVs with 3D capabilities are more price-maintaining. For example, the average price of 3D LCD TVs rose by 4.2% from the previous month to US$2,418.
On the other hand, TVs lacking high-end features offer discounts, and even high-end branded TVs currently sold as basic models are discounted because of the lack of advanced features. This type of TV includes a refresh rate of less than 50 inches and a frequency of 60Hz. It does not have internet capabilities and uses CCFL backlighting. The price of 40-inch TVs fell to 590 US dollars, compared to 968 US dollars a year ago.
In addition to high-end specifications, other positive factors in the TV market have also helped stabilize prices. For example, the panel maker's LCD plant continues to maintain a low capacity utilization rate, avoiding additional inventory in the market leading to price declines. Sales in the two major markets, China and the United States, were also better than expected, especially in the weeks leading up to the NFL Finals in early February.
Among retailers, the price change in February was less than 3% from January, and the majority tends to rise. The only exceptions are major shopping malls such as Costco and Wal-Mart. The price of 50-inch and larger TVs has fallen. This is the strategy for these stores to clear their inventory. In contrast, the average sales price of regional and online shopping malls rose, as the holiday season helped them sell many small and low-profile models.
TV prices are expected to remain stable in the coming months, with no signs of slowing down, especially with new models of 39, 43, 48 and 50 inches this year. A new TV from Vizio, California, will also enter the market with an aspect ratio of 21:9, which is different from the current common 16:9. Samsung Electronics and LG TV will launch the first TVs with OLED screens, and may also be available later this year.
While prices are still an important factor in attracting buyers and a major factor in promoting television sales, new television and advanced features may continue to inject vitality into the TV market. These TVs provide consumers with the desired functions and functions that suppliers want to promote.
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