IHS: TV Prices Down
2.3% In February
By TWICE Staff On Mar 21 2011 - 3:01am
EL SEGUNDO, CALIF. —
A new report from IHS
iSuppli found that average selling prices on flat-panel
TVs in the United States fell for the third consecutive
month in February as manufacturers sought to clear
old inventory in advance of the 2011 model deliveries.
Average U.S. TV pricing in the month of February
dropped to $1,108, down 2.3 percent from the January
level of $1,134, with the biggest percentage decrease
occurring in sets sized 21 inches to 29 inches
and in those larger than 50 inches, iSuppli said.
February’s pricing fell 3.7 percent, down from
$1,151 during the same month a year ago, continuing
a trend that started in December 2010, a month
after TV prices shot up and temporarily reversed a
long course of steady decline.
“The ongoing retreat in U.S. TV pricing reflects a
determined push among television manufacturers to
woo consumers into buying new sets, ostensibly to
replace older models for newer upgrades that take
advantage of the latest display technologies and connectivity
solutions,” stated Riddhi Patel, IHS iSuppli
television systems and retail services director. “And
with numerous competitively priced models expected
to be released soon, many basic-level models from
2010 have been discounted to push out inventory.”
TV brands also are building on a strategy to widen
their pool of offerings to further draw in shoppers.
Consumers now have more choices — from models
providing the latest premium features such as
3D, Internet connectivity and LED backlighting, to
sets in which advanced features have been left out
or scaled back in exchange for a lower price.
For LCD TV overall, pricing fell on every size group
by about 1 percent to 2 percent, declining to $1,037
The 50-inch and larger LCD TVs featuring the
older CCFL technology saw a $102 decrease from
their previous perch in January and an even steeper
drop of $301 when year-ago levels are taken into
Among LCD TVs featuring the more advanced
technology of LED backlighting, price declines were
smaller, averaging less than 1 percent in February.
The firm attributed that to the growing popularity of
ultra-thin sets among consumers.
Most of the price decrease in the technology segment
centered on LED-backlit sets smaller than 50
inches, with the largest drop on average of $28 falling
on the 30- to 39-inch models.
The only segment in the TV space where pricing
went up in February was in 3D LCD TVs, increasing
by $16 on average, to $2,990.
The total number of available 3DTV models
jumped to 68, compared with 54 in January and 19
in March 2010, as industry manufacturers continued
to push the technology.
Excluding 3DTVs, the general decline in LCD
televisions was mirrored in the plasma TV area,
with prices falling to $1,525 on average in February,
down 3 percent from the earlier month, according
to IHS iSuppli. Much like their counterparts in
the LCD space, plasma sets are experiencing deep
price cuts and discounting to make room for the new
The contraction in TV pricing for LCD and plasma
models notwithstanding, the market is set to gain
strength after the first quarter in line with normal
seasonal patterns, IHS believes, and retailers are expected
to then raise average prices across all channels
after all the old models have been cleared away.