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IHS: Average TV Prices Rose In The Second Quarter

8/06/2012 12:01:00 AM Eastern

EL SEGUNDO, CALIF. — Secondquarter
sales of advanced features and
larger screen sizes helped average retail
prices on U.S. flat-panel televisions
climb to the highest level in two and a
half years, according to a new study released
by IHS iSuppli.

The market research firm’s “U.S. TV
Price and Specifications Market Tracker
Report” showed pricing for U.S. flatpanel
televisions reached $1,224 during
the second quarter, up 3 percent from
$1,190 the previous quarter, and 9 percent
from $1,124 in the same period a
year ago.

The firm said the second-quarter level
represented “the peak pricing point in
the U.S. market for at least 10 quarters,
dating to the beginning of 2010.”

The pricing figures account for all
television technologies.

“The climb in U.S. flat-panel TV prices
is attributed to market gains in retail
among new sets sporting advanced
technologies, such as 3D, integrated
interactivity and LED backlight technology
used in LCD TV sets,” stated
Edward Border, IHS TV technology
analyst. “Consumers also are buying a
larger portion of sets with web 2.0 features
characteristic of smart TVs. Moreover,
some large-sized television models
in both the LCD and plasma categories increased their share, contributing to
overall growth in pricing.”

The report found that the availability
of 3D sets at retail rose to 30.9 percent
in the second quarter, up from
27.8 percent the prior quarter. A similar
increase occurred for smart TVs,
growing to 44.3 percent, up from 40.9
percent, and for LED-backlit LCD sets,
rising to 63.5 percent, up from 59.2
percent, IHS said.

Specifically, availability increases were noted in some
large screen sizes between the end of the first quarter
and the close of the second.

The share of 46-inch LCDs at retail rose to 12.2 percent,
up from 11.8 percent, while 60-inch LCD increased
to 5.2 percent from 4.2 percent.

Plasma sets saw an even greater expansion, with 50-
inch screens rising to 23.8 percent, up from 21.2 percent;
60-inch screens increasing to 23.6 percent, up
from 18.6 percent; and 65-inch screens growing to 6.9
percent, up from 6.1 percent.

In LCD TV, the majority of screen sizes smaller than
42 inches saw an increase in average retail pricing with
the growing popularity of FullHD, LED backlighting and
Internet connectivity.

An exception was noticed in the continued decline of
average pricing on 32-inch models. By the second quarter,
the average 32-inch set pricing was $435, down
from $495 in the first quarter.

Pricing for 42-inch LCD TVs plunged to $761, from
$807 in May, following two consecutive months of price
hikes, IHS said.

In smart TVs, average pricing in June fell to $1,907
from $2,015 in May, but still rose up from the $1,724
level seen in June last year.

IHS said, “Smart TV can be considered a major technological
success so far this year, appealing to consumers with its dynamic mix of interactive features, easy integration
with set-top boxes, emphasis on online streaming
capabilities and access to over-the-top cable content.”

For plasma sets, pricing in the second quarter was up
for sizes ranging from the 46- to the 60-inch models, declining
only in the 42- and 65-inch categories.

Average pricing in the second quarter for plasma displays
as a whole reached $1,628, while that for LCD TVs
amounted to $1,120 during the same period.

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