[opendtv] News: Consumers Upgrade, but to Smaller TVs

No surprise here, but the tome of the headline suggests that something unusual is happening.
We are now moving into the mainstream upgrade phase of the transition to "Digital TVs." The end of NTSC broadcasts next year may be a factor in the shift to sales of smaller screen sizes, but there are many things in play here.
First, the sales of big screen TVs (i.e. > 40") was largely driven by early adopters and those in upper income brackets who could afford to spend in excess of $1,000 for a new TV. It should have been (was?) expected that as lower income consumers began to upgrade the average sale price and screen size would come down.
Second, many of the early adopters are now buying 2nd and 3rd flat screen TVs for other locations in the home.
It is important to note that the average size (25"-27") and sales price (< $300) of TV receivers in the analog world, would ultimately impact the sales of new digital ready displays (note that I did not say HD ready). We are now entering that phase of the transition. 

Regards
Craig

http://www.nytimes.com/2008/08/16/technology/16tv.html?_r=1&th&emc=th&oref=slogin

Consumers Upgrade, but to Smaller TVs

By ERIC A. TAUB
Published: August 15, 2008
Americans are not just switching to smaller cars. They are also buying smaller TVs. 
Related
Sales of 19-, 22- and 32-inch televisions were responsible for much of a notable 52 percent year-over-year increase in L.C.D. TV shipments to retailers in the second quarter, according to data released Friday by DisplaySearch, a research firm. Shipments of all types of televisions grew 28 percent from last year.
With the switch to digital broadcasting next year, consumers have upgraded aging TVs, but have done so by buying smaller, more affordable models.
"We had expected a shift to moderate screen sizes, but we did not expect overall volumes to increase that much," said Paul Gagnon, an analyst at DisplaySearch.
Samsung remained the leading TV manufacturer. Its share of the flat-panel TV market rose to 18.9 percent, from 14 percent in the first quarter.
Shipments of L.C.D. TVs rose 52 percent. Samsung's market share in that segment grew to 18.3 percent, from 13.5 percent. Samsung's flat-panel shipments rose 147 percent from last year.
Sony retained second place in flat-panel TV shipments, with a market share of 10.4 percent, and in shipments of L.C.D. displays, with market share of 11.7 percent. Sony's shipments rose 185 percent year over year.
Facing increased competition, Vizio fell behind in the L.C.D. market, but moved to second among plasma manufacturers from fourth in the previous quarter, largely as a result of a new 32-inch plasma model. Among plasma manufacturers, Panasonic retained its No. 1 position, although its share of the market decreased to 31.2 percent, from 35 percent in the first quarter.
Panasonic benefited from a new 46-inch plasma that can more directly compete with similar L.C.D. TVs. For all plasma manufacturers, sales of 50-inch models were flat compared with the first quarter.
Even the sale of traditional picture tube sets held up better than expected. While picture tube TVs accounted for only 9 percent of all TV shipments in the second quarter, "we had expected it to drop to 6 percent," Mr. Gagnon said. 


----------------------------------------------------------------------
You can UNSUBSCRIBE from the OpenDTV list in two ways:
- Using the UNSUBSCRIBE command in your user configuration settings at FreeLists.org 
- By sending a message to: opendtv-request@xxxxxxxxxxxxx with the word 
unsubscribe in the subject line.

Other related posts: