TV SALES JANUARY 2009

Bloomberg has an interesting article on TV sales.

Jan. 30 (Bloomberg) -- With her new 46-inch flat-panel television mounted above the fireplace, Theresa Nelson is ready for the big game.

“I wanted a new TV before the Super Bowl,” said Nelson, a 45-year-old brewery engineer at MillerCoors LLC. She paid $1,499 for the Samsung Electronics Co. TV at the Best Buy in Greensboro, North Carolina. The TV, which replaced her 10-year-old set, was $600 off and better than Circuit City’s price, she said.

For the full article visit Super Bowl May Spur Fewer TV Sales as Retailers Fight Slump

THOUGHTS:

• Demand is falling
• Prices are falling to match lower demand with the hope of increasing unit sales
• If sales fall too much, capacity utilization at plants will break below the profitability point
• Expect retailers to push computers to try to stem revenue losses from slowing television sales
• Retailers will push more netbooks and second computers as well as accessories that enable consumers to do more.