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Flat-Screen Inflation?
Electronics | May 24, 07
We're getting used to rising oil prices, but higher-cost flat-screen televisions are another matter.
In the wake of reported remarks by a Philips exec to the effect that seasonally high demand might spur rising flat-panel prices later this year, I thought I'd revisit my March 11 post ("Are Large Flat Screen Makers And Retailers Taking A Break From Price Cutting Each Other Into Oblivion?") and see if the price stabilization/increase I discussed back then has continued. As can be seen from our PriceSCAN Plasma and LCD television indices, the rate of price decline had continued to moderate, especially for wider screen models. And in the case of some best-selling sets, we are already experiencing modest price increases. Some examples are more dramatic than others; the most popular Panasonic plasma on PriceSCAN.com, the 42" TH-42PX600U, was selling for around $1000 three months ago while the current lowest in-stock vendor price on this site is now just under $1600.
Time Period: 7/3/2006 through 5/14/2007
Each tick mark represents one week
Red = High Price, Blue = Average Price, Green = Low Price
Yet even the number one flat-screen television on PriceSCAN, the 46" Sony KDL-46XBR2 Bravia XBR High Definition LCD WEGA, saw its price flatten out months ago, with a modest increase in the lowest offered price over the last couple of weeks.
Time Period: 7/31/2006 through 5/14/2007
Each tick mark represents one week
Red = High Price, Blue = Average Price, Green = Low Price
To be sure, this is still mainly a story of newfound stability as opposed to a steep across-the-board price hike. But, following the steep declines of last year, this is still quite a shift. Sharply falling tech prices have been one of the factors holding back inflation in recent years, and one has to wonder about the macroeconomic implications of an end to this trend. Meanwhile, if you're spending this Memorial Day weekend sitting on a beach contemplating the purchase of a flat screen, consider that with the coming of summer, some of the sharpest near-term price declines may be behind us.
Posted by jeffrey.trester (Permalink)
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