More than 3.2 million flat panel HDTVs will be sold to US consumers in the fourth quarter of 2006, which is more than twice the number sold in the fourth quarter of 2005, according to a new forecast from Pacific Media Associates.
Pacific Media says that the HDTV price wars and the resulting low prices will make it possible for many consumers to choose to upgrade to an HDTV, and often purchase an even larger model than they might have originally intended.
Pacific Media adds that some price cuts will last through the end of the year, with manufacturers and retailers apparently choosing to increase sales volume with significantly lower retail prices, sacrificing large portions of retail and manufacturing profits in the process.
Rosemary Abowd, vice president with Pacific Media Associates, said: “If we combine all flat panel and rear projection HDTV consumer sales in the US we project an 80% increase in unit sales for 2006 over 2005. We expect that pace to slow somewhat for 2007, with units growing only by 19%, or about 2.3 million more units than 2006.
“Everyone expects growth in unit sales, but the big story is on the revenue side. Average street prices continue to decline steadily, in spite of the move to larger screen sizes and higher resolution models. As a result, manufacturers are selling more units but getting less in return. We project that revenues for 2006 will be only 42% greater than 2005, and will be flat for 2007 even though unit sales will increase.”
Recent research from Leichtman Research Group revealed that one in six households in the US now has at least one high definition capable television (HDTV), a quick increase from about one out of every fourteen households just two years ago (see Ofcom Plans New Public Service Channel To Rival BBC).
Meanwhile, in the UK, Continental Research said that the percentage of households with HDTV equipment had increased from 2% in February to 6% in July, an installed base of just over 1 million (see HDTV Households Increase To Over 1 Million).
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