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HDTV Prices May Rise in 2008
The weak dollar and Chinese production costs are cited as reasons.
By
Swanni
 
Washington, D.C. (May 5, 2008) -- Americans have become conditioned to falling High-Definition TV prices, with some big-screen Plasma and LCD sets now under $1,000.

However, a new CNN/Money report says HDTV prices may be rising soon due to the weak U.S. dollar, record fuel prices and escalating Chinese production costs (many sets are manufactured there.)

The web site says the higher set prices could start during the 2008 holidays, putting a major dent in both retailer and manufacturing profits.

Some analysts say retailers will "do whatever they can" to keep prices stable. But Brian Hudkins, president of Gramophone, a Baltimore area electronics store, said "it's hard to imagine that prices will get a whole lot less" than what they are now.

Wilshire Home Entertainment told CNN/Money that it's already anticipating a spike in high-def set prices.

"If you're still waiting on the sidelines for prices to come down, think again," said Wilshire president Michael McMaster.

Shawn Dubravac, an economist with the Consumer Electronics Association, said TV manufacturing costs are rising in part because of an increase in Chinese employee benefits.

"Import prices for all goods are up three percent. That's the fastest rate of growth in eight years," Dubravac said.

Blu-ray player prices could also be impacted, some experts say.

"With the dissolution of HD DVD, Blu-Ray is now the standard," said John Robbins, president of HiFi House, an electronics store in Pennsylvania. "Demand has exploded for Blu-Ray, but Sony is struggling to keep with with demand...We already know that Sony hasn't been able to supply  (Blu-Ray players) over the last 60 to 90 days."

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Phillip Swann is president and publisher of TVPredictions.com. He has been quoted in dozens of publications and broadcast outlets, including CNN, Fox News, Inside Edition, The New York Times, The Washington Post, The Chicago Tribune, The Financial Times, The Associated Press and The Hollywood Reporter. He can be reached at swann@tvpredictions.com or at 703-505-3064.

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