HDTV: Should You Buy a Warranty?

Washington, D.C. (July 15, 2007) -- CE stores love to sell them, but consumers are increasingly saying no to extended warranties for High-Definition TVs and other electronics.

That's according to an article in the Minneapolis Star Tribune.

The newspaper reports that Best Buy recently revealed that its extended warranty sales fell 12 percent in the past year and Circuit City reported an eight percent decline in service or protection plans.

The reason: Prices of high-def sets, particularly Plasmas and LCDs, have fallen considerably, giving people less concern about replacing them if necessary.

"When a TV is $3,000, you're far more inclined to attach a $300 warranty to it than if the TV costs $1,200," said Colin McGranahan, a Sanford C. Bernstein & Co. analyst.

"When Plasma TV sets first came out, they seemed so exotic," Eric Arnum, editor of Warranty Week, told the Star Tribune. "You mention 'plasma,' and you're talking about the surface of the sun, the fourth state of matter, and, well, you better insure that. It just sounds scary."

Click to read Part Two of this article.

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Swanni (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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