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  • Low Prices For Televisions…How Low Can They Go?

    [caption id="attachment_5346" align="alignleft" width="150" caption="WalMart Is King Of Low Prices"]prices[/caption]

    Now is a great time to buy a new television. With the Holiday season over, more and more big name television makers are cutting back costs tremendously. Andrew Martin of The New York Times discusses further:

    It’s a great time to buy a television, and Ram Lall, a television salesman, isn’t happy about it. In a basement showroom of J&R, the huge electronics store in Lower Manhattan, Mr. Lall says the days of making big money from televisions are in the past. Pointing to a top-of-the line, 55-inch Sony television, Mr. Lall said it would have sold for $6,000 a few years ago. The current price? $2,599.

    “We are making less money because the company is forcing us to slash prices,” Mr. Lall said, standing amid rows of flickering television sets.

    Televisions have become so inexpensive that the profits have largely been squeezed out of them, a result of a huge increase in manufacturing capacity that has led to an oversupply and continued downward pressure on prices from low-cost manufacturers and online retailers.

    The near fire-sale prices are great for consumers, who can now buy a television for a fraction of what one cost just a few years ago.

    But what is good news for consumers has been a nightmare for manufacturers of TVs and retailers that sell them. The earnings of mainstay television manufacturers like Panasonic, Toshiba and Sony have been hammered. Sony, for instance, is overhauling its television operations because of what one executive said recently was a “grave sense of crisis that we have continued to post losses in TVs.” Even newer and more nimble competitors like Samsung and LG have struggled to make much money on TVs, if any.

    Read more at The New York Times

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