HDTV manufacturers operate in a scary space. They sell a product that people all over the world feel that they need in order to be entertained. This is great for them because this means that they’ll sell millions of them to people in hundreds of countries.
The problems arise when these televisions are so popular that the price on them ends up dropping. Now they are making less money on each television and effectively evolving themselves out of business. This means that they have to find new ways to sell more expensive televisions. Some examples are the change from UHP to LED lamps in Samsung DLP televisions or the new Mitsubishi LaserTVs.
According to CNet:
A year ago manufacturers were beginning to worry, as prices dropped precipitously, about how they’d extract a profit out of this fast-maturing flat-panel market.
Turns out, their worries were a bit premature, as prices mellowed and the market sorted itself out. Discount brands have lost momentum, more HDTV content is available than ever, and consumers generally understand the difference and value of an HD picture now.
Plus, there are still many things for HDTV manufacturers to take advantage of to keep consumers buying new products. New designs, the analog-to-digital switch-over, and the continuing move from standard-definition channels to HD channels and services are ways TV makers hope to convince consumers to buy their bigger, fancier TVs.
Big is the key right now. As picture technologies get better, and TV panels are made larger, it’s yet another opportunity for the TV makers to charge a premium.
This means that you’re going to see less and less 42 inch televisions and more 60 inch televisions. Prices down, technology on the upswing. In the end the customer gets a better value, especially if you don’t need the latest and greatest.
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