Monday, March 19, 2012

Falling TV Prices

The New York Times has a good article on the recent decline in TV prices. The major reason from the article as to why prices have been falling is that the industry is currently facing overcapacity (more supply than demand), and thus to sell the TV produced, the manufacturers have to lower prices to get consumers to purchase. Additionally, substitutes - such as tablets - are reducing some of the demand for TV's.

1 comment:

Ryan said...

We'll have to see how they respond: stop releasing new technology so quickly forcing consumers to buy what's on the market at a higher price, or turning the TV into a loss leader, possibly with some kind of subscription based service. Interesting analysis