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Plasma shares in US drop as prices rise, report says

Posted: 14 Aug 2012 ?? ?Print Version ?Bookmark and Share

Keywords:Plasma? television? IHS?

Plasma's share of US television retail dropped its lowest since 1Q11 as customers get turned off with rising prices, according to IHS iSuppli US TV Price & Specifications Market Tracker.

The share of all American plasma TV types available at retail fell from 15 percent in July 2011 to 14.9 percent in June 2012 to 13.3 percent in July 2012. Plasma sales were also at a low in 1Q11 when its share plunged to 11.6 percent.

"Despite a brief resurgence in popularity during the second half of last year, the US plasma business is undoubtedly a market on the decline," said IHS analyst for TV technology Edward Border. "While this deterioration is part of a long-term global trend, the drop in plasma sales in the US in 2012 is also due to consistently elevated pricing. The decrease in sales has reduced plasma's market share, allowing LCD TVsplasma's traditional rivalsto further their dominance in the overall US TV space."

Bigger screens, bigger prices
Larger screen sizes and higher-value sets for plasma TV caused a price increase of $1,621, on average. The July rate remains below the $1,649 level posted in May and the $1,598 mark reached in April, but is 1.4 percent higher than the June figure of $1,598.

Plasma was able to increase its share of the US market at the end of 2H12 due to significant price declines offered by manufacturers and retailers during those busy selling seasons. Thus, average price in plasma TV retail dropped to $1,494 in December of 2011, the lowest historical total on record. Although to a less massive degree, the trend can also be seen in 2012, and HIS expects model availability to slightly increase and prices to drop around September.

LCD price decline in July
Flat-panel television prices in the US, a category where LCD-TVs and plasma sets fall under, had risen to a more than two-year high in the second quarter. However, 3Q12 heralded a price decline for LCD TVs, which account for the majority of the flat-panel market.

The drop in LCD TV pricing stretched to all specifications, including interactive Smart TV's and thin-panel styles sporting light-emitting diode (LED) technology. Price declines were consequential of heated competition among brands and retailers.

Retail pricing in July for all television kinds in the American market fell to %1,171down from $1,194 in June but up from $1,149 of July 2011.

Figure : Average Retail Pricing for US Plasma Televisions
Source: IHS iSuppli Research, August 2012.

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