iSuppli watches all kinds of technology markets for things running from computers and tablets to TVs and more. The company has published its latest research that looks at flat-panel TV shipments. Flat-panel TVs include LCD sets, plasma TVs, and rear projection TVs. For the first time in history, the market research firm iSuppli is predicting shipments of flat-panel TVs will fall.
Shipments are expected to decline in 2012 to 37.1 million units, which is 5% less than the 39.1 million units shipped in 2011. Interestingly, despite shipments expected to decline this year, profits in the flat-panel TV market are expected to go up.
Factors Contributing to the Decline
Several factors contribute to the anticipated decline in flat-panel TV shipments. One significant reason is market saturation. Over the past decade, many households have already upgraded to flat-panel TVs, reducing the need for new purchases. Additionally, the economic climate has made consumers more cautious about spending on non-essential items, including new TVs.
Another factor is the rapid advancement in technology. With the introduction of 4K and even 8K TVs, as well as OLED technology, consumers may be holding off on purchasing new sets until these technologies become more affordable. This waiting game can lead to a temporary dip in shipments as the market adjusts.
Impact on Manufacturers and Retailers
iSuppli notes that last year flat-panel TV makers overproduced TVs leading to sharp price reductions later in the year. This year, production will be more in tune with demand resulting in improved profits. This adjustment in production strategy is crucial for manufacturers to maintain profitability. By aligning production more closely with actual demand, companies can avoid the pitfalls of overproduction, such as excess inventory and the need for significant discounting.
Retailers, on the other hand, may face challenges due to the decline in shipments. With fewer units being sold, retailers will need to focus on upselling higher-end models and offering value-added services like extended warranties and installation services to maintain their revenue streams.
Research firm expects shipments to continue to decrease for at least the next three years. This long-term decline suggests that the market is undergoing a significant transformation. Manufacturers may need to innovate and diversify their product lines to stay competitive. For instance, integrating smart features and enhancing connectivity options could make flat-panel TVs more appealing to tech-savvy consumers.
Have a look at our handy guide which explains the difference between LCD and LED TVs. Understanding these differences can help consumers make more informed decisions when purchasing a new TV, especially in a market that is becoming increasingly complex with various technologies and features.
The decline in flat-panel TV shipments marks a significant shift in the market. While this may pose challenges for manufacturers and retailers, it also opens up opportunities for innovation and differentiation. By staying attuned to consumer needs and technological advancements, companies can navigate this transition successfully.
via iSuppli
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