Posted on 12/27/2011 10:58:05 PM PST by Cronos
It’s a great time to buy a television, and Ram Lall, a television salesman, isn’t happy about it. In a basement showroom of J&R, the huge electronics store in Lower Manhattan, Mr. Lall says the days of making big money from televisions are in the past. Pointing to a top-of-the line, 55-inch Sony television, Mr. Lall said it would have sold for $6,000 a few years ago. The current price? $2,599.
“We are making less money because the company is forcing us to slash prices,” ..
Televisions have become so inexpensive that the profits have largely been squeezed out of them, a result of a huge increase in manufacturing capacity that has led to an oversupply and continued downward pressure on prices from low-cost manufacturers and online retailers....
The earnings of mainstay television manufacturers like Panasonic, Toshiba and Sony have been hammered. Sony, for instance, is overhauling its television operations because of what one executive said recently was a “grave sense of crisis that we have continued to post losses in TVs.” Even newer and more nimble competitors like Samsung and LG have struggled to make much money on TVs, if any.
..For retailers, the picture is not much better. This month, Best Buy reported a 29 percent drop in net income for the third quarter, in part because the retail chain had slashed prices on televisions and other electronics.
(Excerpt) Read more at nytimes.com ...
The Industry has a view of the consumer which is unrealistic. The idea that consumers will spend $3000 for a TV, $200 per month for content, and thousands more for peripherals is unrealistic. There are some who would in a good economy, but that number is not great right now.
The Industry’s expectation that the consumer will upgrade each year is also unrealistic. First, it costs too much for each incremental upgrade. Second, we all kind of know that the next great thing is right around the corner.
Personally, I’m in a ‘settling’ mood. The 50” 720p plasma in my living room still thrills me. I passed on 1080p and 3D. I have weened myself off pay tv. OTA plus Netflix plus a DVD library of my favorite movies is all the service I need. Netflix is on a short leash. I do have 32” and 37” LCDs scattered through my home, but these are nonpremium brands. It may be a LONG time before I spend money on television. That’s the real problem The Industry has.
I’ve never understood why people are so willing to part with a large chunk of their disposable income for tv.
I get it when well-off people splurge - but I often come across people who I know are struggling, and there it is....gigantic big-screen, latest tech, expensive monthly package.
Here's another thing..I've noticed that people have started to realize that it's easy to get TOO big a set for the room..it's like sitting too close to the screen in a movie theater. No need to spend the extra thousand plus in many cases..
Same here. I also have Blu-ray and HD surround sound. I am always amazed at the FR comments about "not needing no stinkin' TV". I have tons of classic films to watch. Who cares if "nothing good is on" when I can choose what I want to watch? The Blu-ray of Ben-Hur looks and sounds amazing.
True, but visitors get a giggle out of the oldfashioned tv’s with digital settop boxes and high-falutin’ rabbit ears, lol.
TV’s may become like cell phones and printers. The basic item will be free or dirt cheap, and the consumables and services (ink, toner, minutes and programming) will be where the profit is made.
“Give away the razor, sell the blades.”
People with EBT cards and getting other Guv't moneys will accept nothing less than 47" LED TVs
we’re put on this planet to give others a few moments of joy. So why not :)
CVS has a 13 inch TV for $79.
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