What They Say
Along with panel pricing, DSCC has been tracking historical TV price data for the US that is compiled by the US Bureau of Labor Statistics (BLS) as part of its Consumer Price Index (CPI). DSCC pointed out that the TV index has fallen so far that a TV that cost $100 in 1982-1984 would cost $1.23 today.
Over the long term, TV prices had always fallen until last year when they rose. However, normal service has been resumed now and pricing has fallen back.
DSCC has analysed the relationship between panel price changes and set price movement and is working on a five month lag. On the basis of its analysis and with Black Friday approaching, it expects pricing to further drop in Q4. The firm said that in the past, falling prices have not stimulated volume demand growth, but that might change this year as consumers’ disposable income has been hit in a range of areas.
What We Think
The long term price decline has been quite amazing in TVs. Consumers really have been winners over the years and the TV business has not seemed to acquire the knack of other industries such as cars in getting consumers to keep paying more for better products. (BR)
