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Plasma HD Sales: Not a Pretty Picture
Makers of the flat-panel set are hurt by falling prices.
By Phillip Swann
 
Washington, D.C. (April 11, 2007) -- Plasma HDTV revenues fell more than 16 percent in February compared to last year, according to the NPD Group.

The research firm says Plasma sets generated $181 million in sales in February against nearly $216 million in February 2006.

The group says this was the first ever year-to-year decline in revenue for the popular flat-panel TV.

The development has led to slowing profit growth for some leading Plasma makers.
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The smaller revenues can be attributed to falling prices with some 42-inch Plasma high-def sets costing less than $1,300. NDP said the average price of a Plasma TV in February was $1,688.

While prices have also fallen for the flat-screen LCD HDTV, LCD makers have offset the drop by selling larger-screen sets.

"
Unlike LCD TVs, plasma TVs have not been able to offset lower average prices by reaching high volumes in their larger screen sizes," NPD's Ross Rubin said.

Rubin acknowledged that the lower price has enabled Plasma makers to reach a wider audience, but that has come with a price.

"While these lower prices have allowed Plasma manufacturers to reach out to a broader consumer base with a differentiated display technology, it's still not enough to keep revenue on the rise," Rubin said.

Panasonic yesterday unveiled a new 42-inch Plasma HDTV that can display high-def video in 1080p, the highest resolution available. Plasma makers are hoping that the new technology and other upcoming advances will keep sales rising.

Despite the decline in overall revenues, NPD says sales of Plasma units jumped 30 percent, with the 42-inch category leading the way.

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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.

Click TVPredictions.com to read more news and features on TV technology. 

 
 
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