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.
Wale, during the financial crisis and market down time, as a part of cost cutting instead of closing the R&D facility: some of the companies had done collaborative each other for R&D, which can be beneficial mutually. This will help them to minimize the R&D expenses and the outcomes can be shared among them for technical benefits. Without R&D, no new products can introduce to markets.
Waqas, Nokia is also a contributor for Android consortium. But in between they left the consortium for windows and release Nokia Smartphones with Windows OS. That's one of the big mistake they had done.
Wale, when undergoing financial crises, the first cut comes from R&D section. They may close the R&D section and either transfer or rearrange employees to some other sections or even lay off in certain conditions. I don’t think that’s the best method, I strongly believes that without R&D, none of the companies can withstand for a long period. Otherwise they have to copy similar products from competitor.
"Android is a consortium by Google, Nokia, Samsung, LG etc, "
I was unaware that Nokia is a partner in Android consortium as well. It surprised me also because these days Nokia is on the verge of adopting Microsoft's OS. So does it mean that Nokia is backing out of the Android consortium or is it adopting the strategy of foot in 2 boats ?
I think Google, Nokia and Samsung synergy worthwhile in that context. Especially with the market struggling of Nokia, it stands to benefit more in the partnership both innovatively and financially.
Jacob, i agree with you. What do you think of those companies means of cutting-back solely targeting reduction in number of employees and expenses on R&D? Does that mean identifying weakest link and less-performing areas within those companies much more difficult or headcount has often been reviewed as the best method?
Waqas, it's a reality. Android is a consortium by Google, Nokia, Samsung, LG etc, similarly, I know some of the companies have similar hardware collaborative R&D projects (our company is also doing hardware R&D collaborative with 2 other companies, who are in same line of business). From customer point of view, we may think they are competitors, but behind the stage all are friends.
Wale, technically you are right. if they are not able to get ROI from R&D, what's the feasible way. That's the one reason most of the companies shortcut the R&D expenses and centers. For last couple of years, for minimizing the expenses, all most all companies started their cost cutting from R&D centers.
Yeah, consortium not bad idea though. But any high -tech business running away from R&D is taking a bigger risk. I would prefer staying and spending more in research & development than continue to maroon in an island of technology. If that happens playing catch-up would not be enough, i think.
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.
Archived Dialogues
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.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
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.
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