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TV Prices Fall, Squeezing Makers And Sellers

Discussion in 'Off-Topic Discussion' started by CatfishRivers, Dec 30, 2011.

  1. CatfishRivers

    CatfishRivers Well-Known Member

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    TV prices fall, squeezing makers and sellers - San Jose Mercury News (click for full article)

    "It's a great time to buy a television, and Ram Lall, a television salesman, isn't happy about it. In a basement showroom of J & R, a huge electronics store in New York, Lall says the days of making big money from televisions are in the past. Pointing to a top-of-the line, 55-inch Sony television, Lall said it would have sold for $6,000 a few years ago. The current price? $2,599.

    "We are making less money because the company is forcing us to slash prices," Lall said, standing amid rows of flickering television sets.
    Televisions have become so inexpensive that the profits have largely been squeezed out of them, a result of a huge increase in manufacturing capacity that has led to an oversupply and continued downward pressure on prices from low-cost manufacturers and online retailers.


    The near fire-sale prices are great for consumers, who can now buy a television for a fraction of what one cost just a few years ago.
    But what is good news for consumers has been a nightmare for manufacturers of TVs and retailers that sell them. The earnings of mainstay television manufacturers like Panasonic, Toshiba and Sony have been hammered.


    Sony, for instance, is overhauling its television operations because of what one executive said recently was a "grave sense of crisis that we have continued to post losses in TVs." Even newer and more nimble competitors like Samsung and LG have struggled to make much money on TVs, if any."
     
    Last edited: Dec 30, 2011
  2. credo

    credo New Member

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    I say BS. The TV is basically plastic & glass with a chip inside.

    Sent from my Galaxy Nexus using Tapatalk
     
  3. eferz

    eferz Well-Known Member

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    The economics of producing a television costs much more than than the raw materials.
     
  4. ChrisG8

    ChrisG8 Well-Known Member

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    For Sony, LG, Samsung, Funai, and the rest of the manufacturers, that is true. Credo can make a TV out of some plastic, glass and a chip, apparently no patent licensing or other company manufactured parts are required. For someone like me that can't do that and has had to buy TVs for the last 40 years, the current situation with a 42" HDTV costing less than a 19" color NTSC set did 4 decades ago, I am delighted with the market that exists now. Competition has made it very difficult to make a profit on HDTVs, Blu-ray players and PCs. Only Apple seems to be able to offer products to the consumer electronics market with a reasonable profit margin.
     
  5. BucYouUp68

    BucYouUp68 Member

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    This is why Apple Can,

     
    Last edited by a moderator: Jul 30, 2014
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