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IHS: Avg. TV Prices Rose In Q2 2012

El Segundo, Calif.
– Second-quarter 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 study released Monday by

IHS iSuppli


The market
research firm’s U.S. TV Price and Specifications Market Tracker Report showed
pricing for U.S. flat-panel 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, as shown in the figure

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.

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 rose still 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-inch to the
60-inch models, declining only in the 42-inch 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.