TV Prices Decline Slightly in August27 Sep, 2011 By: Erik Gruenwedel
Unit prices fall for the first time in four months
Retail prices for flat-panel LCD and plasma high-definition televisions fell in August — the first drop in pricing since March, according to research firm IHS.
The overall average price for a LCD or plasma TVs declined just 0.4% or $5 to $1,145 from $1,500 in July. By comparison, the last retail price drop for TVs in March was $21.60 for the average unit.
Prices dropped more for larger screen sizes: 3% for 40-inch to 49-inch models, 2% for screen sizes larger than 50 inches and 1% for 30-inch to 39-inch units.
“Larger-sized televisions have been hard to sell given the slow economy and the absence in general of a big-enough price decline to motivate consumers to buy,” said Riddhi Patel, director for television systems and retail services at IHS.
As far as 3DTVs, pricing in the 30- to 39-inch range dipped below the $1,000 level in August for the first time since the size group was made available in 3D in March. Other 3DTV sizes dropped in price from less than 1% in the larger than 50-inch size to 3% for both 30- to 39-inch and 40- to 49-inch models.
Unit prices increases in August occurred with smaller screen sizes, including smaller than 20 inches and in the 21-inch to 29-inch range.
Finally, consumer interest in plasma flat-panel TVs continued to decline. Prices fell by about $80 for 50-inch-and-larger sets and by $21 for 40- to 49-inch sizes, compared with July. Among consumers, only 21.5% chose to replace a plasma set with another plasma model — which means that the majority, or 78.5%, abandoned plasma for a different technology, such as LCD.