US flat-panel TV prices surge in early 2012 as brands and retailers shift strategy,says IHS Press release;Alex Wolfgram,DIGITIMES[Thursday 10 May 2012]Although flat-panel television shipments are expected to decline in the United States this year,the sophistication of features used in the sets is on the rise,causing a rare,sharp increase in pricing during the first four months of the year,according to IHS iSuppli.
High-end television features like Internet connectivity and LED backlight technology have helped US flat-panel TV prices climb 11.4%since December 2011.And in April,average pricing for US flat-panel televisions including LCD and plasma sets reached US$1,248.
Tom Morrod,head of television technology for HIS,said TV manufacturers and retailers are charging a premium for these features,boosting their pricing and protecting their revenue.He also said this represents a shift in strategy among brands and retailers to hold the line on pricing and encourage consumers to buy more expensive sets.
Compared to the US$1,119 average rate in December,the first month that prices started rising again after a plunge in November,US flat-panel TV prices climbed to US$78 at the end of April.This represents the largest increase of any comparable four-month period during the past year.A gradual rise in prices also occurred from April to July in 2011,but the total increase during that four-month period amounted to only US$33.From November 2011 to February 2012,the four-month increase measured slightly more than$63.
April's average pricing was slightly up from the March level of US$1,232.A year ago in March 2011,pricing for US flat-panel sets had tumbled to a low of US$1,087.
Morrod added that unlike the costly price wars waged by manufacturers last year that left both suppliers and retailers bloodied,brands and sellers in 2012 are working together to keep money flowing into the industry.The industry is able to accomplish this by making consumers pay for features that they want,and by excluding features that buyers are not willing to pay for,according to Morrod.
Meanwhile,in comparison to TVs that gained in pricing,models that featured lower refresh rates or had no Internet connectivity saw their prices decline.For instance,pricing slipped 6 percent in April for 40-and 42-inch sets made by premium brands that used the older LCD technology of CCFL,had lower 60-hertz refresh rates and that lacked Internet capabilities.For TVs offering advanced functionalities,pricing during the same period ticked up by 1%for the 30-to 39-inch segment,and by 2%for both the 40-to 49-inch as well as for the 50-inch-and-larger categories.
