Will HDTV manufacturers and retailers pay penalty for increasing prices too soon?

SUNNYVALE, USA: Retrevo asks, "Did HDTV manufacturers and retailers shoot themselves in the foot by increasing prices for HDTV sets as much as 30%?"

Data from the Retrevo Pulse, which includes a publicly available index from Retrevo that maps daily trends in consumer electronics, indicates a disproportionate drop in demand for HDTV compared to other consumer electronics such as digital cameras, camcorders and DVD/Blu-ray Disc players.

According to Retrevo’s index, prices for HDTV products began to rise in mid-January, with the average selling price surging approximately 30% from January to mid-April. During the same time period, Retrevo’s index shows consumer demand for HDTVs continued to weaken, while other electronics product categories remained flat or increased slightly. Retrevo speculates that high prices may have discouraged buyers with a resulting decrease in demand.

“It is typically not a good strategy to increase prices at a time when consumers are hunkering down and trying to save money,” said Vipin Jain, CEO of Retrevo. “Reduced advertising on the part of brands and retailers, as well as some seasonality, has likely also contributed to weak demand. The good news for consumers is that our April data revealed that HDTV prices have leveled off and might even be heading back down. So, if you are in the market for a new HDTV, now is a good time to start tracking prices and looking for deals. Retrevo will continue to track HDTV trends and deals throughout May and report back at the end of the month.”