LCD panel competition grinding down retailers
Retailers are feeling the pinch in the LCD panel market, according to an article in the New York Times. A glut of supply, slowing total market demand for LCD's at their current price points and shrinking margins is adding up to a headache for retailers. Even the selling of ancillary items to go along with HDTV purchases is getting tough. For example, fewer consumers are willing to pony up for extended warranties at the lower prices. And the Blu-ray / HD DVD format war doesn't help HD player sales, either. The NY Times article recommends waiting to purchase until after the holidays. But in the fast-moving world of tech, we believe there are only two times to buy -- now or never. There are great sets out there for good prices, and plenty of content as well, so what are you waiting for?[Via 1080eyes.com]
Reader Comments (Page 1 of 1)
GhostDoggy @ Sep 1st 2007 10:21AM
Even though Costco changed their return policy on these flat-panels (and other items), they did work with the manufacturer to extend the manufacturer's warranty from one to two years at no additional cost to the consumer.
I think this is where Costco, in one example, beat out competitors for a given product line.
Derrick @ Sep 1st 2007 10:43AM
Wait 'til Next year! That has to be the dumbest recommendation.
Brian @ Sep 1st 2007 3:50PM
I read the advice as saying that we're approaching a sweet-spot with regard to LCD panels, that being just after the holidays. The point, I believe, is that the way things are now, pressure on retailers will result in a situation where just after the holidays, they'll be forced to substantially reduce prices even further to clear out 2007 models that simply won't sell at desired price-points this year. For Summer 2008 and beyond, perhaps retailers will be more conservative, so supply will be reduced and therefore the price-the-value ratio won't be as attractive.
This is consistent with what happened with DLP a year and a half ago, though without as much of the the added pressure of reduced demand we're seeing with regard to LCD today. Folks who waited until mid-year 2006 to buy DLP took advantage of substantially lower prices than was available up to then, and substantially higher quality than was available up to then. While both prices and quality have improved since then, the rate of improvement for both has leveled out, making it more of a "now or never" kind of decision.
For LCD panels, the prices have been quite high, and so waiting has been beneficial. Again, I believe the point is that we're approaching a sweet-spot with regard to LCD panels, at point at which, thereafter, waiting won't make as much sense.
jon @ Sep 1st 2007 12:28PM
If i kept waiting till next year id still have a 13" Black and white tube
mcrexx @ Sep 1st 2007 12:37PM
As a retailer of all things HDTV, I completely agree with this articles. Margins for flat panels 42" and below is getting less and less every month. It's unfortunate for us, but that's just the nature of the beast I guess.
Lakeonaut @ Sep 1st 2007 2:30PM
You'll always be able to get something better and cheaper if you wait, usually. But if you save a couple of hundred bucks but miss out on 5 months of hi-def enjoyment, was it worth it? As they say, life's short.
Also, as I was recently lifting my 120 lb. TV onto the top of the buffet, I was wondering how much cheaper they can make something that weighs this much. There must be a floor somewhere.