Report: Housing Slump May Impact LCD TV Sales8 Oct, 2007 By: Erik Gruenwedel
A slumping housing market, exacerbated by the sub prime mortgage crisis, is expected to negatively impact sales of liquid crystal display (LCD) television sales through the holidays, according to a new research report.
Isuppli Corp., an El Segundo, Calif.-based technology research firm, said the credit crunch in the United States could limit consumer disposable income and purchase of luxury items such as flat panel TVs and computers.
The report said that while LCD panel suppliers raised prices upwards of 25% and 7% from April through September for PC monitors and 32-inch TV panels, respectively, inventory increases will continue through the end of the year.
The report said troubles in North America could affect global markets since most of the LCD manufacturers are Asian-based.
Manufacturers had expected an increased demand for 1080p projection HDTV, including those with LED backlights, to spur fourth quarter sales. Indeed, wholesale prices for the models increased more than $5 in July through August.
With the exact scope of the sub prime mortgage mess just now being realized, consumer electronics purchases are expected to significantly decline.
“This may affect fourth quarter pricing of large-sized panels,” said Sweta Dash, director of LCD and projection research at iSuppli. “The issue could become more of a problem if consumers stop spending and tighten their purse strings because of the mortgage problems.”