Continued economic strife, coupled with slowing price reductions throughout the end of the year will result in the first-ever market decline for LCD TVs in the United States since the technology hit store shelves in 2006, according to the market research firm iSuppli.
As disposable income dwindled for many Americans, including seniors, over the past few years, many manufacturers were selling less and less of their LCDs. This meant that fewer units were ordered and shipped to retailers. Estimates show approximately 31.9 million LCD TVs will ship in 2010, compared with 32.3 million the previous year, a 1.2 percent decline.
In iSuppli’s press release, director and principal analyst Riddhi Patel notes that manufacturers are trying to de-emphasis slashing prices in favor of a new approach.
“LCD TV makers shifted strategy in 2010, moving away from the traditional market-growth approach of cutting prices to stimulate sales and toward a value-added tact of offering sets with more advanced features that retained their price power,” he said.
These advanced features include things like built-in Wi-Fi or new 3D display technology. Despite these efforts, demand has not increased much.
Other factors, such as low consumer confidence and high unemployment, have also contributed to the decline. Add to that the fact that with many consumers purchased flatscreen TVs when the economy was good, and it becomes apparent why the market has struggled as of late.
Manufacturers are hopeful, however, that this slight dip in the LCD market is nothing more than a blip in the radar, as sales estimates are being projected to rise in 2011 and beyond as the economy improves.
Click here to read iSuppli’s official press release.