Monday, February 05, 2007
Statistics about the actual number of sets sold backs this up. For example, according to iSuppli, about twice as many television set larger than thirty inches were sold during the third quarter of this year as were sold during the third quarter of last year. The cost of Digital TV sets in the thirty to thirty four inch category fell by about twenty five percent between the third quarter of last year and the third quarter of this year. Sets between forty and forty four inches fell in price even more- by thirty eight percent- during the same time period.
The idea that manufactures and retailers are making more money because of these trends was supported by a recent report form Matsushita, the parent company of Panasonic, that stated that it nearly doubled its second quarter profits because of increased sales of Plasma Screen TV's. Matsushita claims to have sold almost eight hundred thousand Plasma screen HDTV's, which is over twice as many as the three hundred and fifty thousand sold by its nearest competitor, LG. As more Plasma screen TV's are sold over the next year, Matsushita expects to sell around eight million units total.
High definition television sets aren't the only type of high definition equipment that's expected to come down in price over the next year. Supporting equipment like High Definition DVD players are also becoming cheaper. Samsung's BD-P1000 Blu-ray HDTV DVD player is being sold by Amazon.com for approximately seven hundred and thirty dollars. That's almost three hundred dollars less than the suggested retail price of nine hundred and ninety nine dollars. Just because this unit costs less than other Blu-ray players, that doesn't mean that it's short on features. The Samsung BD-P1000 can also up-convert normal DVD's so that they look almost as good as real High Definition Television on an HDTV screen. This could give the Blu-ray format a slight edge over its rival HD-DVD format which is made by Toshiba and supported by Microsoft.
While many big box retailers might be upset by the an outfit like Amazon.com undercutting their prices, price reductions can ultimately be a good thing for consumers, retailers, and manufacturers alike.