Plasma TV: Sales and Prices Slumping

A new market research report from the NPD Group, plasma televisions have shown their first year-over-year loss in revenue...mostly due to price declines.

New figures from the market research for the NPD Group found that plasma televisions registered their first year-on-year decline on sales, with revenues generated from sales dropping 16 percent in February 2006 compared to a year earlier. Theconsumer electronics market in general slumped in February, bringing in $900 million for the month, representing a 13 percent decline from a year ago. "Unlike LCD TVs, plasma TVs have not beenable to offset lower average prices by reaching high volumes in their larger screen sizes," said Ross Rubin, NPD’s director of industry analysis, in a release. "While these lower priceshave allowed plasma manufacturers to reach out to a broader consumer base with a differentiated display technology, it’s still not enough to keep revenue on the rise." Plasma televisions didmanage to increase unit sales 30 percent for the year, but those sales generated only $181 million in February 2007, compared to the $216 billion the technology pulled in in February 2006. Theaverage price of a plasma TV was $1,688, the lowest average price the technology has seen in three years, and barely above the rock-bottom for plasma TVs in November 2006, when the average price hit$1,672. Consumers still prefer 42-inch plasma sets, although 50inch sets are increasingly vying for the top slot. The 50-inch sets are the leading earners in the plasma market, bringing in an averageprice of $2,040.