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TV Pricing in U.S. Declines to Make Way for New Models: IHS iSuppli

Mar 15, 2011 | By Quincy Liang

Taipei, March 15, 2011 (CENS)--Pricing for flat panel display (FPD) TVs in the United States fell for a third consecutive month in February as manufacturers sought to clear old inventory and make room for new 2011 models, according to the latest IHS iSuppli research.

The average selling prices (ASP) of TVs sold in the U.S. in the month of February dropped to US$1,108, down 2.3% from the January level of US$1,134, with the biggest percentage decrease occurring in sets sized 21-29 inches and in those larger than 50 inches. The major display market research firm said that February's pricing also was 3.7% down from US$1,151 during the same month a year ago, as shown in the attached figure, continuing a trend that started in December 2010, a month after TV prices shot up and temporarily reversed a long course of steady decline.

IHS iSuppli pointed out TV brands are also building a strategy to widen offerings to further attract purchasers. Consumers now have more choices—from models providing the latest premium features such as three-dimension (3D), Internet connectivity and light-emitting diode (LED) backlighting, to sets without advanced features for higher affordability.

For liquid-crystal display televisions (LCD TV) overall, pricing fell on every size group by approximately 1% to 2%, declining to US$1,037 on average. The 50-inch and larger LCD TVs featuring the older technology of cold cathode fluorescent lamps (CCFL), for instance, saw a US$102 decrease in January and an even steeper drop of US$301 compared to levels years ago.

Among LCD TVs featuring the more advanced technology of LED backlighting, price declines were smaller, averaging less than 1 percent in February, likely a testament to the growing popularity of the ultra-thin sets among consumers. Most of the price decrease here centered on LED-backlit sets smaller than 50 inches, with the largest drop on average of US$28 for 30- to 39-inch models.

The only TV models that saw price increases in February were 3D LCD TVs, up by US$16 on average to US$2,990. And showing the industry's commitment to support 3D technology, the number of available 3D TV models in the U.S. jumped to 68, compared to 54 in January and 19 in March 2010, the research firm said.


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