That's according to an article in today's New York Times.
The global economic slump could force companies in categories from cars to clothing to slash prices during the next few months. Consumers are nervous that their jobs and economic futures will be jeopardized by a deep recession.
The Times reports that research firm DisplaySearch says the TV sector could see prices cut as low as $400 for a 32-inch LCD HDTV and $600 for a 42-inch Plasma set prior to Black Friday, the traditional opening of the shopping season.
Stan Glasgow, president of Sony Electronics, told The Times that his company won't match those numbers. But he added that they "do not shock me."
DisplaySearch says that the CE industry may already be experiencing a slowdown in sales due to worsening economic conditions. The company told The Times that LCD sales increased 22 percent in September, but that was less than the 28 percent increase reported in August and the 32 percent jump in July.
"People are afraid to spend money," said Stephen Baker, vice president for industry analysis at the NPD Group, which owns DisplaySearch.
Baker added that he does not expect Blu-ray players to fall much lower than $250 this holiday season.
“There is not enough demand for Blu-ray to grow its installed base. Look to Christmas 2009 for aggressive pricing," he said.
Despite Baker's comments, however, many retailers are already selling Blu-ray players for under $200.
Not everyone is buying the sour talk. For instance, Bob Perry, Panasonic’s senior vice president for marketing, told The Times that "we’ve been through wars and national calamities. I just don’t see sales dropping off.”
Some industry officials echo a view offered here at TVPredictions.com on October 20 -- consumers won't stop buying TVs, but they will seek out smaller sets with smaller price tags.
“The momentum was heading toward the 42-inch size, but now that’s off track. That size is the aspirational sweet spot,” one industry official told The Times.
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