Sunday, February 04, 2007
Another factor that can drive down the prices of electronics is the competition among retailers for market share. One great example that we can expect to witness in the immediate future will come as a result of Wal-Mart's recent push to lower the prices of consumer electronics across the board. Wal-Mart recently announced that it will drop prices on much of its stock of electronics for the holiday season. The most dramatic drop in prices can be seen among Plasma screen TVs and LCD screens. For example Wal-Mart is selling a forty two inch Plasma TV set that normally retails for about one thousand seven hundred dollars at a mere one thousand two hundred and ninety four dollars. A thirty seven inch LCD HDTV set made by Polaroid is selling for under a thousand dollars at Wal-Mart even though it costs thirteen hundred dollars elsewhere. There's also a thirty two inch LCD HDTV screen made by RCA that generally retails for about a thousand dollars, but is being sold at Wal-Mart for less than eight hundred and fifty dollars.
Wal-Mart isn't limiting itself just to television sets though. For example, a Toshiba HD-DVD player that normally sells for about five hundred dollars is being sold by Wal-Mart for four hundred and forty eighty dollars. A Blu-ray player made by Phillips that normally costs about one thousand dollars is on sale for less than nine hundred.
Wal-Mart isn't the only retailer that's cutting the cost of consumer electronics. Amazon recently reduced the price of a Blu-ray player to the point where it's now hundreds of dollars below retail.
While there is supposed to be a glut of LCD screens on the market, because the price cuts effect a much wider variety of electronics, it's more likely that they are the result of retailers trying to get a competitive edge on each other for the holiday season, rather than actual supply and demand type market pressures.