Pacific Media Reports Distributors’ HDTV Inventories Piled Up In January

Holiday sales failed to reach expectations, especially for smaller sizes [The following is a release from Pacific Media Associates]

February 27, 2008

Pacific Media Associates, the global market information experts on large-screen displays, reports that inventories of consumer flat panel televisions at North American distributors rose 68% in January over December’s levels. Their Flat Panel Display Distributor Tracking Service report for January 2008 also shows that distributor sales of HDTVs fell 37%. “These results are in sharp contrast with the January 2007 results,” according to Rosemary Abowd, Vice President with Pacific Media. “Last January saw a 18% increase in unit sales over December 2006, and inventories declined 7% over that period. This year’s results run in the opposite direction.” The inventory logjam was most pronounced in the 30” to 34” range, which represents the majority of the most affordable HDTV models. Inventory levels more than tripled in January, in spite of a 55% increase in sales. Abowd points out “Distributors were able to move considerably more of these products in January than in December, but far more units had been ordered than could be sold. It appears that many of the consumers who were the targets for these products kept their money in their pockets. Higher food and energy prices, tighter credit, and uncertainty about jobs and the economy were likely the main factors.” Abowd continues, “We also see some evidence that January distributor inventory levels were boosted by manufacturers handing off stocks that they had failed to sell directly to major retailers during the holiday buying season. These remaindered units will likely push the average street price down for this segment in the coming months.” Based on the unit sales of consumer HDTVs by distributors in January, Sony earned a first place position with 35% unit market share. Viewsonic was second with a 21% unit market share.

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