HDTV sales expected to jump

It’s the most wonderful time of the year – it’s the holiday buying season. With Thanksgiving just around the corner, the gift getting and giving is about to hit full stride.

This year, the high definition television market is benefiting strongly from the season – with one catch. Although the sales are up about twice as much as this same quarter in 2005, profits are actually down, percentage wise.

The holiday price wars, which are a treat for the consumer, have been a trick for the industry. The lower prices have enticed consumers to take a bite out of the new technology, and in most cases to go bigger than they originally planned. With mega stores, such as Wal-Mart and Target, getting into the market, retailers are set to launch even greater deals on the HDTV’s through the end of the year.

Consumer sales of flat-panel and rear projections HDTV’s was expected to increase at a rate of about 80% for 2006. As more consumers become aware of the government forced change to digital for all broadcasts by 2009, it is likely that figure will continue to grow – although not at the same inflated rate – for 2007.

The manufacturers expect the unit sales to continue the rise. But as the retail price continues its steady fall, they are seeing less return. The projected revenues for 2006 are only 42% greater than 2005, and it is projected to even out by 2007.