Consumers Upgrade, but to Smaller TVs

[johnnymk]

http://www.nytimes.com/2008/08/16/technology/16tv.html?_r=1&th&emc=th&oref=slogin

Americans are not just switching to smaller cars. They are also buying smaller TVs.

Sales of 19-, 22- and 32-inch televisions were responsible for much of a notable 52 percent year-over-year increase in L.C.D. TV shipments to retailers in the second quarter, according to data released Friday by DisplaySearch, a research firm. Shipments of all types of televisions grew 28 percent from last year.

With the switch to digital broadcasting next year, consumers have upgraded aging TVs, but have done so by buying smaller, more affordable models.

“We had expected a shift to moderate screen sizes, but we did not expect overall volumes to increase that much,” said Paul Gagnon, an analyst at DisplaySearch.

Samsung remained the leading TV manufacturer. Its share of the flat-panel TV market rose to 18.9 percent, from 14 percent in the first quarter.

Shipments of L.C.D. TVs rose 52 percent. Samsung’s market share in that segment grew to 18.3 percent, from 13.5 percent. Samsung’s flat-panel shipments rose 147 percent from last year.

Sony retained second place in flat-panel TV shipments, with a market share of 10.4 percent, and in shipments of L.C.D. displays, with market share of 11.7 percent. Sony’s shipments rose 185 percent year over year.

Facing increased competition, Vizio fell behind in the L.C.D. market, but moved to second among plasma manufacturers from fourth in the previous quarter, largely as a result of a new 32-inch plasma model. Among plasma manufacturers, Panasonic retained its No. 1 position, although its share of the market decreased to 31.2 percent, from 35 percent in the first quarter.

Panasonic benefited from a new 46-inch plasma that can more directly compete with similar L.C.D. TVs. For all plasma manufacturers, sales of 50-inch models were flat compared with the first quarter.

Even the sale of traditional picture tube sets held up better than expected. While picture tube TVs accounted for only 9 percent of all TV shipments in the second quarter, “we had expected it to drop to 6 percent,” Mr. Gagnon said.

[DarkFury]

Only reason I can see folks buying smaller TVs is that LCDs seem to be the most popular and for the larger sizes, the prices are still quite high...

Folks are buying HDTVs considering the upcoming switchover, yet many folks aren't willing to part with $2K+ for a TV, therefore they end up with a smaller size in many cases.

If the prices on the larger sizes drop dramatically, I'm quite sure we'll see a change as more people probably would buy the larger sizes for their main viewing areas (of course for bedrooms, the smaller TVs are probably ideal... :D )

[Chgoman]

I'm actually surprised now that you can pick up 42" Plasmas in the $750-$1000 range and 50" in the $1000-$1300 range at Costco. I would expect those sizes to take off at those prices. Go figure...

[Cubsfan]

I think the big thing is that there are a lot of people buying TV's not because they need/want a new TV, but because they don't want to bother/don't understand about the digital transition. These people think they need a new TV to handle it, and therefore they're buying a budget TV, but in reality, most of them will probably not be watching any type of HDTV on it.

[SteveB]

Or could it be that a lot already have the 42plus inch set in the main viewing room and are getting smaller sets for bedroom, etc?

[DarkFury]

I'm actually surprised now that you can pick up 42" Plasmas in the $750-$1000 range and 50" in the $1000-$1300 range at Costco. I would expect those sizes to take off at those prices. Go figure...
"720p"....

Try finding a 1080p for that price. :D

[Chgoman]

Yeah, but the reality is that although people have been forking over lots of extra money for 1080p for several years now, there are not currently any broadcasts at that resolution. A few are about to start, but at normal viewing distances in your average home 99% of people cannot tell the difference between 720p and 1080p. When you're looking at screens larger than 50" it starts to make a difference, but for most people, it's just not worth the money as there's little to no benefit.

[DarkFury]

On the larger TVs the difference will be more noticeable than on smaller TVs... and that's all I'm referring to with the statement I made above.

I currently have a 62" HDTV... do you think that one makes a difference? I do. :D (and last I checked, I'd have to pay an arm and a leg for a 62" LCD TV, regardless if it were 720p or 1080p. :eek: )

[Chgoman]

Absolutely. Up to about 50" there's not much of a difference for most home users. Above that 1080P does make a difference, but the home market for for that size TV is pretty small both due to cost and space issues.

I really enjoy my movies and home theater so I don't mind paying extra if it's going to make a difference, but I'll still tell most people not to pay extra for the 1080p on the average 42-50" purchase beacuse while you may see a slight difference in the store standing 4 feet in from of the TV, at home most will never notice the difference. To be honest, one of my TV's is a 42" panasonic EDTV (480p) and although I can tell the difference, most people who come over rave about how good my 'HDTV' looks.

My view is 480p is a hugely noticable jump over 480i (SDTV). 1080i and 720p are a decent jump, but not as noticable over 480p. 1080p is a fairly small and barely noticable jump, unless you have a screen larger than 50".

Just my take.

[Chgoman]

Oh, and I definatly vote for 1080p on the 103" Plasma I saw playing at the fair a few weeks ago. We need to throw that badboy on the back of your house DF and have the Hemi drive in :thumbup:

[DarkFury]

Both of my 32" LCDs are 720p... so I don't have a problem with that format.

However in my main living area, I want a TV as big as the wall (if I could afford it...) Kinda my "ghetto way" of making my living room look like a theater room (without having the cash to really build a true theater room. :D )

Sure would be nice to have an 80" LCD in there hangin' up on the wall... but at the price it would cost, it would be a definite deal breaker for me. Oh well.. back to my rear projection DLP I suppose. :D

[DaFunkyUnit]

the price to size ratio skyrockets after the 46" mark for flatscreen LCDs. A 42-46" LCD costs on average $1000-$1700, while anything larger (50"+), you're looking at $2500+.

[Prngr44]

See and I thought the smaller ones were flying off shelves because most of the HD adopters have a large tv in their tv room and were replacing bedroom/kitchen/garage/etc tv's with something a little smaller for those rooms.

[DarkFury]

See and I thought the smaller ones were flying off shelves because most of the HD adopters have a large tv in their tv room and were replacing bedroom/kitchen/garage/etc tv's with something a little smaller for those rooms.
That's my scenario...

I can justify $500 - $800 on a TV to replace ones in my bedrooms (considering that I paid over $800 for a 27" Mitsubishi tube TV about 12 years ago that ended up in my bedroom. :D )

However spending $2,000+ on a bedroom TV is out of the question in my particular case. :eek:

[Chgoman]

I'm eyeing the 42" 720p Panasonic Plasma at costco for $799 for my bedroom. It's going kinda high up, so I want a good size, but I'm still debating if I want to wait another 6 months and see where the price is at.

[SteveB]

I was in Costco today and every person I saw pushing a TV on a cart was 42" or bigger. They had bigger screens set up all over the front of the store at some good prices I might add. There was a 50", can't remember the brand, that looked really good for $2995.00

[mojo]

i wonder how many of the "smaller TVs" are actually being bought to replace computer monitors

[attgig]

I think people frequenting this board is pretty skewed to the hi-techy/better off side of the american demographic.
If I didn't get a tv for my parents, I know my dad would've freaked buying a tv for 750-1k. there's no way they would've done that.
I think it's a bunch of people reluctantly switching from their 27" crt's to a 32" lcd.
Growing up in a pretty wealthy suburbia, I think only ONE of my friends had a big screen tv back in the day. Yeah, they were pretty pricey back then, but still. I don't think the ratio would switch much with most baby boomers.
it's us young spoilt folk who need the big screen tvs now.

[MrGreg]

I suppose the tv I bought last week is technically a downgrade in size (52" from 57") bit it's an upgrade in every other measurement.