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Lower Prices For Smaller Screens
Electronics | Sep 22, 09
The last couple of weeks have seen marked declines in the price of mid to small-sized LCD and plasma televisions.
In late August I reported an increase in the price of larger plasma sets (“Sudden Price Spike Demonstrates That, For Plasma Televisions, Size Matters”) but as noted in two recent PriceSCAN press releases, this trend has not translated into price strength for more modest televisons. Indeed, following summer price gains, early September saw a 6.8% decline in the PriceSCAN 40 Inch Plasma TV – 1080p Index. We also witnessed a 3% drop in our LCD TV – 20-29 Inch Index, after three months of relatively stable pricing.
One gets a sense of this looking at the PriceTrend graph of the most popular model of the later diagonal range on this site, Toshiba’s 26AV502R 720p LCD. The lowest vendor price on PriceSCAN for this model has fallen over 10 % since early May..
Time Period: 5/4/2009 through 9/14/2009
Each tick mark represents one week
Red = High Price, Blue = Average Price, Green = Low Price
This price deterioration may reflect consumer caution after a summer increase in confidence (especially for those who are not high-end buyers), and may also be partially driven by retailers marking down mature technologies ahead of the introduction of a new generation of televisions, such as those compatible with 3D Blu-ray (see “Getting Them 3-D, Blu-ray Blues”). In any case, it remains to be seen whether television prices falling with the autumn leaves will be enough to breathe new life into tech retail as we enter the holiday shopping season.
Posted by jeffrey.trester at 4:46 AM | Comments (0) | TrackBack
Getting Them 3-D, Blu-ray Blues
Electronics | Sep 9, 09
Blu-ray prices are plunging, and the market may be anticipating new 3D players and the obsolescence of the current technology.
Blu-ray manufacturers, notably Sony and Panasonic, demonstrated competing 3D technologies last week at the IFA Berlin electronics show, just after the PriceSCAN.com Blu-ray Index took a pronounced dive, as noted in our recent press release. While the firms involved gave some indication that they would address back-compatibility, i.e. 2D playback of 3D disks on the current generation of Blu-ray players, actual 3D playback will be possible only on new players and televisions, with the first 3D Blu-ray products supposedly hitting the market in 2010. That impending revolution puts an expiration date on 2D Blu-ray’s state of the art status, perhaps motivating retailers and manufacturers to preemptively mark down current models.
Back in January 2008 I remarked that, even as Sony’s standard emerged victorious from a bruising battle with Toshiba’s now vanquished HD-DVD, Blu-ray found itself challenged by another disruptive technology, video on demand (see “Will Blu-ray Vanquish HD-DVD, And Will Anybody Care?”). Now, with high-def VOD alternatives available, the disk and stand-alone player model is facing a formidable challenge to achieving lock-in as a consumer standard. Hence the push to 3D.
Just to add to the intrigue, Sony’s new approach uses polarized glasses and the Dolby Real 3D standard you may have experienced at a midnight Harry Potter showing, while Panasonic is using the more rarely deployed active shutter powered glasses, a more costly technology some say produces a better viewing experience. So, just when you thought the format wars were over…
Of course, who’s to say that 3D-HD televisions won’t also be displaying 3D VOD, making the widespread adoption of next-generation Blu-ray disks once again dependent on how VOD providers deal with issues of bandwidth, compatibility of content.
With consumers already hesitant to buy due to their own financial insecurity, it would not be surprising if all this technological uncertainty motivates many to stay on the sidelines and wait for clarity, and that could mean further cuts in both current Blu-ray and television prices as we move into the holiday season.
For more on all this, check out Fox reporter Michelle Buckman’s segment on Blu-ray (featuring my commentary), as well as her story on her very useful consumer blog.
Posted by jeffrey.trester at 11:56 AM | Comments (0) | TrackBack
