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Yuriko Nakao / Reuters
A man looks at Panasonic televisions displayed at an electronics store Oct. 31 in Tokyo. Many Cyber Monday deals on televisions have been extended through this week.
Japan’s legacy television brands continue to struggle against competitors like Samsung and LG as well as low-cost Chinese manufacturers, and this means a fuzzy picture for American shoppers trying to decide if and when to buy a TV.
Retailers are struggling to move inventory as shoppers, still wary about the economy, gravitate towards cheap Chinese options despite their lack of bells and whistles.
“I think the market’s flooded now,” said RJ Hottovy, director of consumer equity research at Morningstar.
Sharp and Panasonic reported losses for their most recent quarters. Sharp was the most dire in its outlook, saying it faced “circumstances in which material doubt about its assumed going concern is found” in its most recent earnings report. Sony’s quarterly operating profit came in below the expectations of analysts surveyed by Thomson Reuters, according to CNBC.
In the short run, this could be good news for buyers who want to buy a TV this holiday season, especially those in the market for a 50-inch-plus behemoth.
“It’s a great time to buy big screens,” said Gary Merson, editor of HDGuru.com. “It’s the fastest-growing segment, but it didn’t grow as fast as they expected.” The result is lower prices across the board. The kind of deals that usually surface in January are here now, as manufacturers race the clock to get rid of their excess inventory before their new models come out early next year.
"We had great Black Friday deals. We had great Cyber Monday deals," he said. "A number of the vendors have extended their pricing from Cyber Monday through the week... If you see it at a substantial discount this week, grab it." While there might be better deals down the pike for TVs that are currently 10 percent off, Merson said the 30 percent, 40 percent and even higher discounts won't last.
Merson highlighted a Samsung 60-inch LED LCD with an MSRP of $2,570 now selling for $1,297.99 through Amazon.com, nearly half off, and a Panasonic 55-inch, LED LCD smart TV with an MSRP of $1,700 now on sale for $899.99.
There’s a flip side to this fire sale, though. Analysts say name-brand manufacturers are scaling back production for 2013 and focusing more on higher-end models, which could translate to higher prices in the form of fewer markdowns, rebates or add-on freebies, especially if demand for more sophisticated models grows.
“Thin costs money. Smart costs some money if it’s built into the set, and better quality panels with higher contrast ratios cost more money,” Merson said. “If you want better performance coupled with a svelte design and smart [functionality], they all have a built in inherent cost.”
“Those brands are more likely to fight on features than price,” said Stephen Baker, vice president of industry analysis at NPD Group.
The question is whether American viewers will pay for those features. The industry is taking a big gamble that they will.
Following a less-than-robust demand for 3-D TVs, manufacturers are pinning their hopes on what they hope will be the next big thing, a super-high resolution that goes by the terms “4k” or “ultra HD.”
“4k is to HD what HD was to standard definition,” said James McQuivey, principal analyst at Forrester Research.
But it’s not mainstream yet for a few reasons, he said. A big-screen set retails for five figures, and there isn’t yet any content or transmission standards for the format (and tech bloggers argue about the extent the human eye can even appreciate that many pixels).
Merson said interest among early adopters was good, but it’s still a very small slice of the buying public willing to drop $10,000 or more on a television. What's more, the cutthroat competition in the market will drive even the price of this “next big thing” down in just a few years.
This means shoppers who are willing to be patient will probably be able to get more TV with more features for less money, especially as Chinese companies become increasingly sophisticated and start competing more directly with brands like Samsung.
TV viewers who want cutting-edge technology, especially when it comes to resolution, as soon as it hits the market will pay for the privilege. “I see much more innovation... just to differentiate between the manufacturers,” said Paul O’Donovan, principal analyst at Gartner Inc.
“The real premium price goes to the ultra HD,” he said. “This is exactly where they plan to get their money.”
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Avoid trends, always buy quality, plan to keep it - as if it were an investment, and you can't go wrong. Sharp Aquos, regardless of size, is still one of the highest quality best picture LCD TVs around. We patiently waited until they came down in price before buying; been pleased with it for the past couple of years and don't plan on replacing it. Waiting now for the Samsung LED SMART wi-fi/browser/built-in app sets to come down in price before we buy one of those for upstairs. Doubtless, we'll have that one forever , too. There's no way in Hades I'd plunk down a bundle to be the first to buy rapidly evolving technology, most of which I don't need. Nor do I care to pay through the nose to keep up with the Joneses, who are likely in debt up to their eyeballs.
Maybe I'll look into those in a couple of years. So far my over 10 year old tube tv is working fine. I did buy a flat 19 inch for the kids room- just in case they decide to knock it down!
We bought a 60" Sharp Aquos LCD a few days before Black Friday. For less than 700 bucks too! Best Buy had them on sale at 400 off for just a few hours and we capitalized on that sale. Our 42" Sharp that we've had for 4 years now is not Aquos but it has been very dependable and is still a superb TV too. Hoping this Sharp Aquos last years!
Only problem with your logic littlechanges is most people are stupid and follow whatever someone tells them to do. Most are too dumb to make their own opinion.
Just before New Years is a great time. You get the post Christmas sales and then you can still be in the window for price matching if there's a lower price on your TV for Super Bowl.
Smart TVs are a waste of money. Alot of people do not know that this add-on is built into most cable boxes and can be accessed on a regular TV.
Maybe it's a good thing, then, that I'm not looking at a big-screen TV. The two TV's I have work perfectly and they're PAID FOR!
I bought my first color tv in 1981 at the age of 38. I bought my first lcd 2 years ago. I will not buy another tv until this one goes. I get more disability VA and SS than I can spend, but why spend it if you don't have to. I bought a new Lincoln town car in 2004 and it will probably be my last car. I paid cash for my house 12 years ago and will not buy another one. I use my Sam's Discover card everywhere it is accepted, no fee and a check every February for about $400. I am leaving all my money to my dogs. Screw the economy.
I have a neighbor who doesn't own any television. About a year after 9/11 he decided to get rid of it. I asked him if he misses the television programs. He said there really isn't anything worth watching these days and most of the news is so depressing it was having a detrimental affect on his mental health. It also played a negative role on his physical health he realized.
One night he was driving down his neighborhood and saw neighbor after neighbor just staring at lighted boxes in every home. It was a really startling moment.That was when it struck him he needed to make a change in his life and get unhooked from that glowing box and its control over his life.
In addition, he was too tempted to sit down and waste precious time just vegetating in front of it.He does have a laptop to watch any DVDs and owns a stereo for his Cd collection.He can keep up on the Internet or listen to the radio with what is important. Otherwise, he has found his life is much more peaceful with less stress.A lot more gets done in his life also these days.
Larry, you're truly making the baby Jesus cry. Don't you know that without perpetual growth our economy fails? CONSUME! CONSUME! If you save you're a commie!
This article reeks of corporate retail a$$ kissing by nbc news. Playing on the fears of the consumer, maybe they will run out and buy that 60 inch super 3-D led 1500 hz 100,000,000 to 1 ratio dolby 12.1 smart TV because, hey, the price may go up.
Anybody with half a brain knows that super duper TV you buy today will be outdated and behind the curve in 6 months.
Wow,,,,, Talk about a squeeker, maybee your so tight they can screw you into the ground,,,,,,,,,,,,,,
Southpaw why are you on the NBC news page if you hate them so much?
"Retailers are struggling to move inventory"? Really? Publishing that statement the week after Black Friday smells fishy. Didn't most retailers offer specials on HDTV's? And weren't those SOLD OUT? Then again, if the retailers are actually "struggling to move inventory" maybe they should try REDUCING THE PRICES! I want to buy a new TV, but I don't really NEED it. After paying the bills and buying gas and groceries, there's not much left to spend on things I don't need.
"Retailers are struggling to move inventory as shoppers, still wary about the economy, gravitate towards cheap Chinese options despite their lack of bells and whistles."
Well, duh. You go into a store and look at all the TeeVees and the picture pretty much looks the same. Which one do you buy? The cheapest one, of course.
A lot of the "features" you never use (like the 25 different input choices) and most people struggle to figure them out.
Sometimes simple is better and less is more. I bought a cheap 42" for $499 and hooked it up to my laptop and we use it to watch Netflix.
Wa-La. Don't need to spend $5000 on a Sony, thanks.
The image is the same only if you are blind and really on the garish showroom settings and environment and crappy source content used to make a choice. The only good thing in showrooms is verifying that you like the TVs look. You should really on professional reviews and comments of people actually using the TVs before you buy. Cheap LCDs usually have terrible contrast ratios, though I agree a $5000 TV is not needed to get a very good picture. A $650 mid range brand name 51-52 inch plasma will give a very good bang for the bucks (You can buy them on sales for even less than that).
My JVC CRT is working just fine.
Many of us use big screen tv's now for the internet, movies, or game consoles. All television is crap these days. People are saving money dropping cable, dumping Dish and getting more bang for their buck just on the internet where you can pretty much find and watch whatever you want, when you want.
Streaming sticks from Roku, Favi and others have made forking out the big bucks for Smart TVs unnecessary. 50 to 100 bucks and your TV has all the smarts it needs.
TV? What a waste of life time! Your life.
I don't buy Chinese electronic. They have terrible work condition, and make products out of dangerous materials and hide them under one form or another. I buy American or Japs.
I don't want to sound cynical or anything, but we don't make TVs here anymore. The best it could possibly get is American engineered and assembled from Japanese and Chinese components, though I don't know of any factories here that do even the assembly portion. Even the Japanese brands are outsourcing to China now. It's a sad state of affairs.
What is the income level of these writers and their editors? A 55" 1080p HDTV could be had for $599 two years and now an $899.99 is the great price example?
People need to realize that the industry continually tries to come up with some dubious new technology in order to get us to constantly buy new televisions. Some of the new features are of no value:
- 3D television: Where's the content to exploit these features? And do you really want to wear 3D glasses at home to watch TV. 3D TV has been a bust.
- Smart TV: Very few people are satisfied with the Internet enabled feratures of smart televisions. These features still work best on computers or devices such as Apple TV.
- 4K/1080p: They are now starting to sell us 4K resolution sets when we've hardly tapped the potential of existing 1080p sets. HD airwave and broadcast signals still transmit in 720p. Only Blu-Ray movies fully exploit 1080p.
I did just replace a 50" plasma TV with a 60" 1080 LED TV, but simply for the size and the reduced electrical requirements. For 90% of what I watch, the old 720p set was just fine.
Cable HDTV and OTA broadcasts utilize 1080i. Only a portion of OTA stations use 720p. 1080i is the same resolution as 1080p, but at half the framerate. (30fps for 1080i vs 60fps for 1080p, both at a resolution of 1920x1080) Considering that they're having trouble offering large amounts of 1080i content because it's so bandwidth intensive, I don't understand how the industry thinks the new super HD standard (or whatever they're calling it now) will be viable for the foreseeable future. Cable couldn't handle it, satellite couldn't handle it and even bluray couldn't handle it. Not to mention people are already dropping big bucks for 1080p sets and likely won't be willing to trash them to upgrade any time soon.
So I should rush out and buy a TV because they might be too expensive soon?
They think we are idiots.
I dumped my TV a year ago and do not miss it a bit. Life is good without TV :)
Purchased a Samsung Model UN55ES7150, SmartTV. WORST purchase ever. This model requires lots of setting up (NOT plug & play) prior to being able to access the Web. 4 days later and Samsung Tech Help STILL hasen't been able to help. Took the day off work just to wait for their "level 2" Tech help and #@!! Samsung didn't call back to provide the necessary help. NEVER have we had such rotten Customer Service from any company! Each Tech Agent we've had the pleasure of repeating our tv's problem to is even dumber than the one before! This TV is going back just as soon as I can box it up. Its evident Samsung DOES NOT give a care about its customers. Count us as one family who will NEVER purchase anything SAMSUNG!!!
When buying a TV onlone always check tvrevs.com. You don't want to be stuck with a TV that wont reach your expectations even know you think its the best tv ever.
yes
Happy with my 2 32" Toshiba LCDs, even favor the Sanyo brand, yes and Sharp makes some pretty good stuff.
Just bought a Samsung 51 inch plasma for $488 yesterday. The picture is the clearest I have ever seen. I know some people have a thing against plasma but I love glass better than plastic.
My granny taught me years upon years ago... buy it new... buy quality, and use it till it is beyond use. This article makes no sense. My husband and I have four televisions in our home. Two of them are the old "box" style... and the picture on them is just as clear as the pic on the LCDs. They are both over ten years old. We bought the 42" flat to go over the fireplace in the living room five years ago. It did not take up floor space, and the old one could not be repaired any longer. It is working, without a hitch to it. The other flat screen is in the adult downs syndrome son's room that lives with us. His old one literally went black, and would not work any longer. Replacing something that works, just to get the new bells and whistles makes no sense at all. Think we will just keep what we have for the moment... Much prefer no debt in our home... and put the money we save under the mattress...
Problem is, our 52" from 4 years ago still works JUST FINE. Being worried about "prices going up"? This article might as well say: "Buy all the junk TVs now before they make new ones!" Here's the thing: TVs are in a DIGITAL world now. What that means is like computers the prices will ALWAYS go down for last year's model. Other posters are right, unless you're an AV buff, you WILL NOT SEE the benefit of your 4K television as 1080p is still only a handful of channels (And we're on FIOS!). When ALL my channels are at a minimum of 1080p, then we can talk 4K. Even then, you think your local cable company is looking to layout the infrastructure to push that kind (4K) of bandwidth? Hell no! BANDWIDTH COSTS MONEY. Until a profit can be made hand over fist, we will NEVER see it! Rental stores are about GONE and I don't plan on amassing a large Blu-Ray collection (As that tech is on a dead-end road anyway) so REALLY what's the rush? What should I do with my other "large screen" TVs that still work fine? Give them away? Put them in every room? LOL. Um.. NO. Wait til 4K becomes mainstream or a TV breaks and buy one THEN whichever comes first!
Ok you tv haters. I love tv. We have two TiVos and record all our shows so we can zip through commercials and not have to figure out if each episode is s re-run. It's great! The best thing is that we search Netflix for series' that we have overlooked, and we've found a ton that we just love. Here are just a few shows...Psych, Bones, Warehouse 13, Murdock Mysteries, and now Sherlock. The trick is to watch TV that you want to watch. We don't watch news, that's what the internet is for. We also watched all the games of my San Francisco Giants in the playoffs and the world series. TV is great! Just schedule it and watch it when you are ready. That way it's a slave to you, not you to it.