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Distributors: Price Drops Will Drive Large-Screen TV Sales


How promotional will TVs be in Q4? Which
features, sizes or configurations will drive sales?

Jerry Satoren, DSI Systems:

As usual, the TV
category will be very promotional in Q4. I don’t believe
that it will be any more or any less promotional
than any other year. Yes, we are hearing that many
panel manufacturers have cut production and there
is some concern over TV supply in Q4. However, I
don’t feel this will curtail the promotional agenda of
our industry at all. Retailers have metrics to hit and
will battle as always to get there.

With that being said, TVs 42-inch and below offered
at “extreme” values will do very, very well. I
am also excited about the Q4 prospects for TVs
60-inches and above. America likes big and we will
see large flat-panel retail pricing hitting sweet spots
that are going to make this segment even more robust
than it is now.

Dennis Holzer, PowerHouse Alliance:

I believe
the TV category will be split into two distinct segments,
promotional price point and premium highend,
with no middle. Promotional price points on
tier-one brands for 32-, 40-, 52- and 55-inch TVs will
continue and drive the business. High-end, larger
sizes such as 60- and 70-inches and above models
which are wireless/Internet ready with all the widgets
will also do very well, and provide higher profit
margins for a change.

Because higher-end units are also 3D by default,
3D sales will be better than they have been to date,
which will also drive some additional accessory

Fred Towns, New Age Electronics:

The TV category
will be quite promotional as price points continue
to come down. When consumers
migrated to high-definition
flat screen TVs a couple years
ago, they really only considered
price. Now there are better sets
with more robust features, like
IP and 3D, which give retailers
another opportunity to sell consultatively,
showing consumers why these features
are beneficial. For example, the sports enthusiast will
want a TV with a fast refresh rate to keep up with the
intense speed of the game. With most sports being
broadcast in HD, the better picture clarity will enhance
their experience even more.

Bill Stewart, Petra Industries:

We think there
will be big promotions on LCD TVs as suppliers offer
promotional pricing and retailers begin to clear the
floor to make room for LED TVs, which are quickly
becoming the standard. The sweet spots for sizes
will be 32- to 46-inch displays and the features consumers
will continue to seek are Wi-Fi capability,
thinness and a 240Hz refresh rate.

Warren Chaiken, Almo:

The TV category will be
very promotional this season, particularly for featurerich
tier-one manufacturer offerings. We are already
seeing strong instant rebate offerings as well as aggressive
bundles which are being used to attempt
to entice the consumer up-market to IP and 3D TV.

We are seeing a shift in business to larger screen
sizes as their prices come down. Size is currently
outweighing features. Given a choice between a
feature-laden 46- to 52-inch TV and a high quality
yet basic 60- to 70-inch TV, the customer appears is
opting for the larger size.

Michael Flink, ADI Americas:

The television
category will be very promotional in Q4. Manufacturers
have been taking a strong
look at minimum advertised
pricing and are starting to develop
processes to return profitability
to dealers. Features
like 3D and Internet-enabled
TV will be very popular, and
screen sizes of 50 inches and
above will drive sales.

Tim Coakley, Ingram Micro Consumer Electronics:

Sales will be value driven. There will be aggressive
promotions from the major players but the
majority of additional sales will come from more efficient
production practices by TV factories. There will
be new panel sizes that deviate from the norm but
they will offer cost effective, feature rich, slim and
very attractive units.

Manufacturers will provide new, more productive
and simplified ways to connect your TV to your home
network and all of the expanding content made available
through the net and especially through content
streaming apps. 3D will continue to drive sales as
the technology gets better and as more 3D content
is provided.