PORT WASHINGTON, NEW YORK, November 8, 2006 – The high demand for high- definition will drive an already booming TV business for the 2006 holiday shopping season in the U.S., according to leading consumer and retail information provider, The NPD Group.
With HDTV content selection improving and prices decreasing, NPD expects consumers to upgrade older, smaller TVs. Flat-panel televisions, for example, offer larger screens while taking up less space than many older televisions, while microdisplay televisions offer a cinematic home theater experience at affordable prices.
HDTV sales have increased 52 percent in unit volume and 39 percent in dollar volume from January through September of 2006 compared to the same time period in 2005. Sales of HDTVs during the 2005 holiday season (November and December) topped $2.2 billion with over 1.4 million units sold and are expected to continue to grow this year.
Affordability is helping to boost HDTV sales. The average price of an HDTV set is down more than eight percent year-to-date (January through September) compared to the same time last year. Prices for LCD and plasma TVs dropped significantly from the 2004 holiday season to the 2005 holiday season with 35 percent and 41 percent declines, respectively.
| Holiday Sales November and December | ||||
TV Type |
2005 vs. 2004 Units | 2005 vs. 2004 Dollars | 2004 Average Price |
2005 Average Price |
HD Direct View |
-2% |
-22% |
$1,875 |
$1,560 |
HD LCD |
390% |
217% |
$1,755 |
$1,133 |
HD Plasma |
382% |
182% |
$5,101 |
$2,991 |
HD Projection |
-15% |
-20% |
$2,130 |
$2,019 |
| Year to Date Sales January - September | ||||
TV Type |
2006 vs. 2005 Units |
2006 vs. 2005 Dollars | 2005 Average Price |
2006 Average Price |
HD Direct View |
-16% |
-31% |
$819 |
$672 |
HD LCD |
194% |
167% |
$1,368 |
$1,241 |
HD Plasma |
218% |
118% |
$3,828 |
$2,625 |
HD Projection |
-12% |
-14% |
$2,006 |
$1,969 |
“Flat-panel HDTV sales will drive the consumer electronics market as a whole this holiday season,” said Ross Rubin, director of industry analysis, The NPD Group. “Lower prices and improving picture quality are rapidly sidelining the bulky tube television.”
The HD experience doesn’t stop with a new television. Consumers can complement these high-definition displays with hi-def options for camcorders, next-generation optical disc players, video game consoles, media center PCs and DVRs. Many of these products are new to the market and carry significant price premiums.
Still, it will be difficult for consumers to go back. “Retailer promotions will finally push HDTV into the mainstream this holiday season,” said Rubin. “This will create a new expectation of breathtaking quality that the industry can build upon in 2007 and beyond.”
About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,600 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, visit www.npd.com.