Is the bottom falling out from under HDTV Prices?

[nightflier]

A couple of month ago I was on the verge of buying an Olevia 747i. Well it wasn't availble yet, but the msrp on it was $3400. When it came out is was going for $2700. Now you can find it for under $2200 at Buy.com, and probably even lower elsewhere. The other LCD I was looking at, the LC-46D62U was about $2400 less than a month ago and is now available for $1700 (http://biz.tigerdirect.com/applicati...2#detailspecs).

What is surprising is that mid-summer isn't exactly discount fever. So are these prices dropping that fast? Can we expect even better prices around the Labor Day sales crunch? Will the Thanksgiving sales feature that Sharp Aquos for under $1000? What's going on with LCD & Plasma production? Does anyone have some input on what's happening with inventories overseas?

[Woochifer]

It's got everything to do with manufacturing capacity overseas coming online. Seems that we have a similar discussion every year about HDTV price drops. The big price push this time around started last Thanksgiving, and hasn't let up since. Mid-summer is actually a time when a lot of new models come onto the market (Pioneer and Panasonic come to mind), which leaves clearances on the remaining inventory. Many of the new models that are introduced at CES in January typically make it into stores starting in June.

[Groundbeef]

You can also blame it on the "Wal-Mart" effect. As traditionally Non-Electronic retailers enter the market they are driving the prices down. Granted most knowledgeable A/V buyers are not going to be buying their HDTV/ AV equipment at either Target or Wal-Mart, but enough are being drawn like flies to a light that it is depressing margins at other more traditional outlets.

Look at CC, BB, and many idependants. Many are now on the ropes (CC) or are suffering profit/earnings issues because of Wal-Mart/Target depressing prices.

Also adding to the issue of price depression is a glut of supply. As MFGs race to fill the shelves of these stores, supply is piling up as consumers are running out of money to buy them. Consequently prices are cut even more to reduce growing inventory.

[kexodusc]

You can also blame it on the "Wal-Mart" effect. As traditionally Non-Electronic retailers enter the market they are driving the prices down. Granted most knowledgeable A/V buyers are not going to be buying their HDTV/ AV equipment at either Target or Wal-Mart, but enough are being drawn like flies to a light that it is depressing margins at other more traditional outlets.

Look at CC, BB, and many idependants. Many are now on the ropes (CC) or are suffering profit/earnings issues because of Wal-Mart/Target depressing prices.

Also adding to the issue of price depression is a glut of supply. As MFGs race to fill the shelves of these stores, supply is piling up as consumers are running out of money to buy them. Consequently prices are cut even more to reduce growing inventory.

I read an article in I forget what a/v mag, that basically said the the newer technologies (DLP, Plasma, LCD) are cheaper to build and ship, and preserve better margins than the old CRT's did simply because the technologies are less fussy. If that's the case, prices could get a lot lower.

This is great. I think the HDTV thing for the first time in decades (probably since the introduction of color) is giving buyers a reason to get a new TV and ditch the old one.
What will be interesting to see is if these sales are sustainable over the next 5 - 10 years. We could be in a situation where future price cuts are used to lure consumers into upgrading sooner. Not unlike the car biz.

I think my mom and dad owned a Sears brand TV and a woodgrain RCA from the early 80's for 17 years - they've had 3 sets since that model. Since 2000, I've bought 2 primary sets myself. Could be we're seeing the whole planned obsolescence model enter the TV industry?

[Groundbeef]

I think my mom and dad owned a Sears brand TV and a woodgrain RCA from the early 80's for 17 years - they've had 3 sets since that model. Since 2000, I've bought 2 primary sets myself. Could be we're seeing the whole planned obsolescence model enter the TV industry?

My wife and I had a Mitsubishi 20" for about 14 years. It was doing well until the cleaning lady knocked it off the shelf (

I hope that new TV's last a long time. I've had my 37" Sony Plasma for 4 years now, and its still going strong. It better last about 6 more.