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LCD TV Prices See 22% Reductions Over Black Friday

12/07/2009 02:00:00 AM Eastern

U.S. retailers during the week of Black Friday cut prices on LCD TV models by an average of 22 percent from pricing immediately prior to the event, causing sales to rise by 6 percent from a year earlier, according to a preliminary estimate released Monday by iSuppli.

“Defying some pundits' expectations, U.S. retailers this year were able to offer their customary Black Friday promotional deals for LCD TVs, which represent a critical factor in driving annual sales growth,” stated Tina Tseng, analyst for iSuppli.

In large part due to the deals offered on and before Black Friday, the fourth quarter is typically the strongest period of the year for the U.S. LCD TV market. An estimated 28.7 percent of 2009 LCD TV shipments in the United States and Canada are projected to occur in the fourth quarter. iSuppli predicted LCD TV shipments in the United States and Canada will rise by 15.3 percent in the fourth quarter of 2009, compared with the same period in 2008.

U.S. LCD TV sales are preliminarily estimated to have risen by only a low-single percentage point on Black Friday 2009, compared with 2008.

However, many retailers offered special Black Friday deals starting on Thanksgiving Day or throughout the seven-day period from Nov. 21-27. For the seven days, LCD TV sales are estimated to have risen by as much as 6 percent compared with a year earlier, according to a preliminary estimate from iSuppli.

The most common set offered via Black Friday promotions this year was the 32-inch high-definition LCD TV.

The report stated average U.S. Black Friday promotional pricing for 32-inch LCD TVs declined to $369, down 24.7 percent from $490 before the event.

The biggest average price reduction was for 19-inch LCD TVs, at 36.8 percent, followed by 26-inch sets at 34.9 percent.

Average U.S. Black Friday promotional pricing for 40-inch LCD TVs declined to $577, down 23.3 percent from $752 before the event.

Price reductions for larger LCD TVs were more modest, with 42-inch sets experiencing a 7.3 percent decline and 46-inch sets dipping by 7.2 percent.

“In the 40-inch and larger screen sizes, better-featured models were offered for Black Friday deals,” Tseng said. “The majority of Black Friday promotions were for FullHD, i.e., 1080p-resolution (progressive-scan) models. Models with 120Hz refresh rates also were found in the 42-, 46- and 55-inch screen sizes.”

“Premium LCD TV brands, such as Samsung, LG and Sony, led the way in offering aggressive pricing deals on Black Friday,” Tseng said. “Because these companies sell their sets at higher price points than the value brands do, they are able to make steeper cuts during Black Friday. This translates to greater dollar savings for consumers, making the deals attractive.”

Sony was singled out for offering LCD TV sets bundled with other products as special Black Friday deals.

“Sony was very aggressive with bundled deals,” stated Riddhi Patel, iSuppli television systems principal analyst. “They bundled LCD TVs with items such as PlayStation3 video game consoles and Blu-ray players. Other brands offered bundles that included wall mounts and audio bars.”

Some retailers also offered special online deals that include free shipping and no taxes.

Average U.S. Retail Pricing for LCD TVs

In U.S. Dollars

Display Size In Inches Price Before Black Friday Week Black Friday Price Percentage Change
Source: iSuppli, November 2009 © TWICE 2009
19 $242 $153 -36.8%
22 $290 $225 -22.4%
26 $384 $250 -34.9%
32 $490 $369 -24.7%
40 $752 $577 -23.3%
42 $755 $700 -7.3%
46 $1,039 $964 -7.2%

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