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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,122.01 +15.31 0.09%
S&P 500 2,000.12 +0.10 0.00%
NASDAQ 4,569.6210 -1.0160 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs