Increased awareness, consumer focus on quality, and promotions will continue to energize category
Port Washington, NY, November 6, 2014 – The 4K/UHD format is the driver of growth within the flat panel television category, with U.S. sales reaching $668 million so far this year, now accounting for more than 7 percent of overall revenue through October 25, 2014, according to The NPD Group’s Weekly Tracking Service.
“This has been a year of increased awareness and an evolution in pricing for 4K/UHD TVs,” said Stephen Baker, vice president of industry analysis, The NPD Group, Inc. “4K/UHD was still very new to the market during the 2013 holiday shopping season, but we believe it will exceed everyone’s expectations this year as consumers have had a full year to learn about the benefits 4K/UHD brings to the market.”
Almost nine times the number of 4K/UHD televisions that were sold in 2013 have already been purchased this year. This growth occurred despite an average selling price (ASP) of $2,400, significantly more than the $450 average for flat panel TV options overall, highlighting the industry’s opportunity to benefit from the growth in 4K/UHD this holiday season.
The growth occurring in larger screen 4K/UHD TVs is a testament to the quality that this technology is delivering to consumers. More than 70 percent of the 4K/UHD TVs sold year-to-date in 2014 were either 55” or 65” displays. This segment isn’t just driving growth in TV sales, it is also driving growth in sales of larger screen sizes.
“Samsung claimed the 4K/UHD market leader spot with a variety of competitively priced options, concentrating on the hottest screen size segments,” added Baker. “As holiday promotions get underway, this year will be the critical point for 4K/UHD to begin to claim its position as the ‘must have’ premium TV experience. The right pricing combined with increased awareness will be essential for success this holiday. Prices have fallen 10 percent over the last four weeks, since Vizio entered the 4K/UHD market, showing that awareness and brand won’t be the only factors in delivering 4K/UHD volumes over the holiday.”
About The NPD Group, Inc.
The NPD Group provides global information and advisory services to drive better business decisions. By combining unique data assets with unmatched industry expertise, we help our clients track their markets, understand consumers, and drive profitable growth. Sectors covered include automotive, beauty, consumer electronics, entertainment, fashion, food / foodservice, home, luxury, mobile, office supplies, sports, technology, toys, and video games. For more information, visit www.npd.com and npdgroupblog.com. Follow us on Twitter: @ npdtech and @npdgroup.