Consumers flock to grab LCD TVs on Black Friday, though a report suggests the market's growth is slowing.
many of the shoppers braving the early morning crowds, their target purchase is
a large television, with features like 3D technology, high-definition (HD)
displays and Web connectivity luring interest. Key to driving sales are low
prices offered by manufacturers coupled with aggressive Black Friday
discounting from big box retailers such as Best Buy, Walmart and others.
is always the big feature," Stephen Baker of The NPD Group told USA Today.
"We are going to see a lot of aggressiveness and see a lot more [models]
in the very large sizes. People are looking for a really big television as they
start to upgrade their flat panels."
big factor in this year's forecast of a reduction for consumer electronics (CE)
spending, however, is the slowing of the LCD TV space, which accounts for
nearly 30 percent of CE revenues. According to an IHS iSuppli Consumer
Platforms Market Tracker report from information and analysis provider IHS, LCD
TV revenue in 2011 is now anticipated to reach $104 billion instead of $110
billion, although the segment retains "solid momentum" going forward.
single most pressing issue remains that of pricing, an ongoing concern in the
dollar-conscious CE market. While consumer appetite will remain strong for CE
equipment, manufacturers will be increasingly hard-pressed to offer their
products at competitive prices," the report noted. "Eventually, price pressure
will outweigh the growing number of pieces of CE equipment, capping CE market
revenue in the process and slowing growth to a trickle."
consumer electronics space covers a variety of devices, including LCD TVs, and DVD
and Blu-ray players, as well as recorders, digital still cameras and portable
media players. Other important categories are video game consoles and handheld
game players, ebook readers, digital set-top boxes and battery chargers. For
most of these categories, IHS has reduced its forecasts to reflect the ongoing
economic slowdown in many parts of the world, resulting in revenue projections
being pulled back.
CE revenue in the second and third quarters fell just short of their levels of the
same time last year, the trend is beginning to reverse starting in the fourth
quarter as holiday sales of televisions and Blu-ray players top their levels
from the same period in 2010. By 2015, shipments will reach 300 million units
for LCD TVs and 80 million for Blu-ray players. In addition, as the LCD TV
space is enduring a reduction in growth, the MP3 market is experiencing an accelerating
fall in prospects, as the once ultra-hot systems are now being cast aside in
favor of high-profile devices such as smartphones and tablets.