This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

TV Sales Slump Translates to Cheaper TVs This Holiday

NEW YORK ( TheStreet) - What gadget is topping consumer shopping lists? (Hint: It's not a tablet.)

It's a TV, according to a study by the NPD Group, a market research firm that tracks consumer purchases.

Sure, tablets, smartphones and video game consoles ranked high on shopping lists, but flat-screen TVs are the most anticipated consumer-electronic purchase, with 28% of people planning to buy one within two years, compared to 20% who plan to buy a tablet.

Ben Arnold, NPD's director of industry analysis, said it may seem surprising that such a mature product category tops the list. But TVs are perhaps the most ubiquitous household electronic device -- he estimates 99% of U.S. households own one. At any given moment, more people will buy a new TV than, for example, a sound bar.

But the other big reason consumers still have a TV on the brain: falling prices on LCD TVs.

"The idea that TV prices are continually falling and becoming more affordable has become part of the consumer psyche over buying TVs. And I'm sure that a lot of consumers wait until Black Friday, when they expect prices to be the lowest. I also would add that we've seen a real move into big screens, and increased affordability is a huge part of that," he said.

Other forces are at work to help prices plummet: LCD glass is getting cheaper due to an oversupply. Glass-panel factories in Asia overestimated demand and slowed production this year, according to Sweta Dash, senior director of display research and strategy at IHS iSuppli. This translates into an oversupply, meaning lower TV prices for consumers worldwide.

"Given the slow demand, panel makers reduced utilization rates for their fabs to 79% during the first half (of 2013), 5% lower than the average recorded during the second half of 2012," Dash said.

Dash says there will likely be some excellent deals on LCD TVs this holiday season.

"We are forecasting about 9%-to-10% price reduction for 32-inch panel from last year second half to this year second half," she said. She predicts a 32-inch LCD TV will be selling for around $133, compared to last year's $148.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BBY $34.70 1.52%
NFLX $624.06 -0.40%
P $18.67 -1.84%
SNE $30.92 -0.83%
AAPL $130.28 -1.14%

Markets

DOW 18,010.68 -115.44 -0.64%
S&P 500 2,107.39 -13.40 -0.63%
NASDAQ 5,070.0260 -27.95 -0.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs