TV Sales Weak, Holiday Prices Expected To Drop

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The holiday season could see a sharp drop in TV prices -- especially newer technology TV sets.

According to a report from DisplaySearch, sales of LCD TVs in North America have been weak in 2010, falling 3% year-over-year because of economic pressures -- unemployment and a slow housing market. All this has resulted in an average lower price for consumers.

"[This] has pushed consumers to the sidelines as they wait for the economy to improve, prices to fall further, or both," stated Paul Gagnon, director of North America TV Research for DisplaySearch. For the busy holiday selling season, lower prices may affect turnout.

The report says LCD TV prices are expected to begin falling more vigorously in the current fourth quarter.

Overall, total TV shipments will reach more than 243 million units in 2010, a 16% increase over the year before. LCD TVs are still expected to grow to 188 million units worldwide in 2010 from 145 in 2009, despite weaker North American sales.

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LCD remains the dominant TV technology worldwide, according to DisplaySearch, accounting for at least half of all TV shipments in nearly every region. It noted that expected higher TV sales this past summer were somewhat lower than expected in Europe -- even with the big World Cup soccer event taking place.

Demand for plasma TV continues to be strong -- even with some price erosion. The firm expects TV set makers to ship 18 million units in 2010, a 25% increase from 2009. DisplaySearch says consumers favor plasma for its high picture quality and 3D capabilities.

 

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