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Analyst: Holiday HDTV Sales to Soar, Revenues Flat

20 Nov, 2006 By: Erik Gruenwedel

Heading into the post-Thanksgiving Black Friday start to the holiday shopping season, analyst say sales of flat panel HDTVs will double to 3.2 million units during the fourth quarter — double from 2005.

The increase in unit sales, however, will not significantly boost revenues, as retailers such as Wal-Mart and Target attempt to carve out market share with deep discounts.

As a result, lower prices coupled with excess inventory at the end of the year are expected to slow unit sales increases to 19% in 2007, compared to 80% this year, according to new data from research firm Pacific Media Associates.

Revenues for HDTVs in 2007 are projected to be flat.

“Everyone expects growth in unit sales, but the big story is on the revenue side,” said Rosemary Abowd, VP with Menlo Park, Calif.-based Pacific Media. “Average street prices continue to decline steadily. As a result, manufacturers are selling more units but getting less in return.”

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