Study: TV Prices Going Up

Washington, D.C. (May 9, 2012) -- For several years, flat-screen TV prices have fallen, giving consumers confidence that they can always get a great deal. But a new study from IHS iSuppli says the deals will son be few and far between.

The research firm reports that the average price for a flat-panel TV rose $78 during the last four months, starting with the average price of $1,119. The increase is the biggest during a four-month period over the past year.

The company adds that LCD and Plasma sets prices hit an average of $1,248 while the average price of a 3D TV rose three percent to $2,492.

Due to increased competition and inventory gluts, TV makers have consistently lowered prices over the last three or four years. In fact, research studies have shown that consumers now expect lower and lower prices, which might suggest the higher prices could meet consumer resistance.

But retailers and TV makers are focusing on raising prices, particularly for sets with more features such as Net-enabled 'Smart TVs.' The industry is determined to improve its overall profit picture.

ISuppli says retailers could have success persuading consumers to upgrade to a better set.

“Retailers are working to convince buyers to move up to either a larger-sized TV or to one using LED-backlit panels,” ISuppli stated in a report released yesterday. “The larger price premium for upgrading to a bigger TV size indicates the market was aware that buyers were willing to shell out more money to obtain larger-sized sets over a similar-sized TV model with LED backlighting.”