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Report: Late 2009 HDTV Sales Rebound Expected

29 Sep, 2009 By: Erik Gruenwedel

Discount pricing, free Blu-ray Disc players and consumer interest in budget, midsize displays will contribute to a projected second half of 2009 surge of high-definition television unit sales, according to a new SNL Kagan report.

The Monterey, Calif.-based research firm said HDTV sales would reach 29 million units this year, up from an estimated 26.2 million in 2008, as consumers react to lower average retail prices for HDTV sets.

Kagan estimates HDTV retail revenues for 2009 will reach $25.5 billion, down from the 2008 total of $28.4 billion. In addition, downward pricing and related value-add consumer electronics products included in the purchase of larger screen models would contribute to a decline in overall margins.
The report said the percentage of HDTV households has grown to 71% of total TV households, or 82.3 million homes, in 2009, up from 16% in 2005, as increased numbers of primary analog or standard digital sets are replaced in the home.

“As average HDTV set prices continue to fall to the $600 to $700 range by 2010 or 2011, we should see mass adoption begin to take hold, with over 80% to 90% penetration of TV households,” said analyst Justin Nielson.

Nielson said that while nearly all TV households would have at least one HDTV by 2012, retail market revenues will flatline around $24 billion due to market saturation as all displays sold at the retail level will be high-definition by 2017 and the average retail price drops to about $500.

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