Trends in LCD TV prices may point to 3D LED and OLED TVs

LCD TV manufacturers should certainly not panic about the recent sales statistics released, but there may be reasons to rethink the routine, electronics trends that have dictated sales prices for years.

Curve-shaped product lives mixed with descending pricing structures are the products of economists and business folks trying to grapple the complexities of the buying behavior of consumers living in a world of constant technological advancements. A product comes on the scene at a premium price with the latest and greatest technology and as time goes by, prices drop and more people start buying it until it no longer is in demand and the product slowly phases out. It is routine with all products.

So what explains the latest trends of increased spending on LCD TVs, a product in existence for years?

According to iSuppli, sales prices are up 7.2% from last month and 2.8% from last year. It is not as though the prices of LCD TVs are increasing at a steady rate with inflation. In fact, in the last two months, inflation rates hovered at about 1.1% or 1.2% while LCD TV prices dropped back-to-back months.

No, instead, it is as though LCD TVs are experiencing a product jump instead of a product evolution (even though evolution is exactly what is happening).

What does that mean?

It means consumers are moving away from the latter part of the buying curve and into the introductory phase of LED and OLED TVs that offer advanced features like 3D and internet. In essence, it means that consumers are not going for the descending prices of LCD TVs, but rather for the expensive ultra-thin LED 3D TVs.

According to an iSuppli researcher, demand for LCD TVs has slowed down this quarter. This means purchases are down of the old, cheaper LCD TVs as consumers see a new future for LED TVs.

Samsung and Vizio have benefitted the most from the trend as the two have targeted advanced LED and 3D technology instead of focusing on the tail end of the simple, flat screen LCD TV.

Vizio, certainly to a lesser extent, has made its way into the LED 3D market as it used to be strictly a price fighter, but from the beginning, Samsung has been a leader of the trends both in quantities and advancements. Samsung’s dominance continues to show in its industry leading, 1.45 million sets sold.

LG may gain more recognition this quarter as well as it makes a move in OLED televisions by showing a 31” OLED TV at the IFA show. Meanwhile, it is working on a 72”, 7mm display that is supposed to be even thinner than the 55”, 8 mm Samsung 9000 series.

The holiday season could certainly recapture the sales of low-priced LCD TVs, but it seems the market is heading to even greater heights in 3D, LED, and OLED and many are jumping ship quicker than expected to these high priced toys.