With LCD prices steadily on the decline, it seems odd that plasma display prices are increasing. But that's what's happening, according to IHS iSuppli, and the result is a declining share of plasma TV sales in the US.
Plasma's share of all TV types available at US retailers fell to 13.3 percent in July, down from 14.9 percent in June and from 15 percent in July 2011, the research firm said in a press release. The last time plasma accounted for such a small percentage of US television retail availability was the first quarter of 2011, when its share dipped to 11.6 percent, IHS reports. Edward Border, analyst for TV technology at IHS, said:
Despite a brief resurgence in popularity during the second half of last year, the U.S. plasma business is undoubtedly a market on the decline. While this deterioration is part of a long-term global trend, the drop in plasma sales in the U.S. in 2012 is also due to consistently elevated pricing. The decrease in sales has reduced plasma's market share, allowing LCD TVs -- plasma's traditional rivals -- to further their dominance in the overall U.S. TV space.
Plasma makers are focusing on larger screens, IHS said, and prices have climbed to an average of more than $1,600 in July. This is 1.4 percent higher than June's figure.
In the meantime, LCD prices fell in July -- part of an ongoing trend as evidenced by the difficulties faced by major LCD makers such as Japan's Sony and Sharp. Both companies reported losses in their recent fiscal quarters due in part to slow TV sales and declining LCD prices. At the start of the third quarter, prices declined for LCD TVs, which account for the majority of the flat-panel market, IHS reports. The declines applied to all types of LCDs, including 3D models, interactive and smart TV, HD sets and LED TVs. IHS adds:
Pricing drops were relatively small, reflecting no great sales or discounts, but instead were a consequence of natural erosion as stores competed with one another. More aggressive price declines occurred as the London Olympics geared up, with even more cutthroat competition to ensue among brands and retailers.
Overall, average retail pricing in July for all kinds of televisions in the American market fell to $1,171 -- down from $1,194 in June, but up from $1,149 the same time a year ago.
You highlighted a great idea of joint-investments in R&D. Its quite a surprise that once fierce competitors, Nokia and Samsung, are joining hands to ensure that they get the maximum benefits out of research which wont be as effective if they do it individually.
Waqas, you are right. Companies are investing billions of dollars' in R&D and before getting the ROI, new technologies are evolving. Now companies are also very cautious and they had shortcut the R&D investments. The best example is Android consortium, where Samsung, LG, Nokia, Google etc are the investors, so there is no individual R&D from each company.
Now a day's the average life of technology is 2-3 years.
I'l agree with you on that. Its quite surprising when companies like Sony and Samsung report loses but they do that quite often. Due to short life of the technology these day, they are bound to take huge risks and its not surprising that small revenue falls often result in loses. Newcomers cannot survive that.
Waqas, agreed. I meant in general that the power consumption in LED Tv is less when compare with the other Tvs. Picture clarity is also too good in LED TV. Anyway, I don’t think there won’t be much market for LED because technologies are changing every day. Now a day’s the average life of technology is 2-3 years.
"but compare with the savings in power consumption and bulk production advantages, its prices can be come down further."
I suspect that the difference in prices of both the technologies, LCD and LED, can be overcome by the savings in power consumption due to LED usage. For residential users, the cost differential might take years to recover based on power consumption pattern. However, for corporate LED customers that make calculations for the long run, they may consider the savings seriously in decision making.
waqas, LCD may also outdating very soon. According to the recent market survey, the sale of LED TV may overcome the LCD market share by first or second quarter of 2013. Now the price of LED TVs are on little bit higher side, but compare with the savings in power consumption and bulk production advantages, its prices can be come down further.
Waqas, now smart TVs are also common in market. It's an Android based TV with internet connection and web browsing facility. In most of such TVs there is no need of even remote control also; all are working on gesture recognition algorithms, where you can flag your hands and fingers for various operations. The technology has grown that much and in such situation, whether anybody prefers plasma is a big question.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.