The prevailing economic uncertainty, along with frantic efforts among TV manufacturers to boost year-end sales, combined to drive down the price of U.S. flat-panel televisions in November to their lowest level in eight months, according to an IHS iSuppli U.S. TV Price & Specifications Tracker report from information and analysis provider IHS.
Overall pricing in November for flat-panel TVs covering both liquid crystal display (LCD) and plasma technology dipped to $1,113.91, down 3.3 percent from the October level of $1,152.55. The November figure reversed the pricing uptick in October, and also was the lowest point since the March level of $1,086.64.
The November low reflects the usual trend of TV prices beginning their expected descent as the holiday season begins, launched into orbit by the usual frenzied selling during Black Friday. This is also the time of heavy discounting in the channel, with brands eager to move shipments to meet rev- enue targets and pushing out sets with older features to make way for new models in the coming year.
To be sure, manufacturers are encountering strong headwinds. TV demand in the United States continues to be weak because of the country’s staggering unemployment, and consumer confidence has been low in the face of a slow economy.
As a result, competition among manufacturers is extremely cutthroat at this point, exemplified by Black Friday prices that show how low manufacturers are willing to go to court the consumer. For instance, Sharp was selling a 42-inch 1080p LCD TV at Best Buy for $200, while a 47-inch 3-D LCD TV with a bundled Blu-ray player from LG Electronics was priced at just $799 at Walmart.
In the LCD category for flat-panel TVs, prices in November were consistent with general trends and fell 2.7 percent on average to $1,020. Compared to October levels, LCD TV prices in November fell from 1.5 percent to 4.5 percent in almost all categories. The only exception was in the 21- to 29-inch segment, where pricing rose an unexpected 1.5 percent following increased demand for premium-branded TVs in that size class.
Within the LCD group, prices fell more among older LCD TVs featuring cold cathode fluo- rescent lamp (CCFL) backlighting technology, compared to their newer light-emitting diode (LED) counterparts sporting thinner panels. For instance, 50-inch-and-larger CCFL sets saw a drop of $201, compared to $54 for 40-inch-and-larger LED sets. The large price drops in CCFL are consistent with manufacturer goals to clear their inventories of CCFL-type LCD TVs going into 2012, in hopes of focusing greater sales efforts on LED-backlit sets that provide greater margins.
The general fall in prices was also seen in 3-D LCD TVs, with average pricing in November down to $2,201—a decline of 0.7 percent from October, and 27 percent less than the year-ago level.
Among plasma sets, rival to the LCD technology, average prices were down 4 percent in No- vember to $1,533. Here, brands are expected to continue focusing on 3-D plasma models to keep up revenue and average selling prices, even as the plasma market is gradually being phased out altogether.
With retailers now at their year-end pricing structure, TV prices are expected to continue their slide downward in December. This should help boost sales for the fourth quarter, compensating for some low points in a year of generally weak TV sales.
Read More > Retailers Slash Prices of Older-Feature TV Models to Boost Q4 Sales