Flat screen TV prices plummet

Steady reductions make it a buyers' market with more falls possible. Photo / Supplied

The price of flat-screen televisions is plummeting, leaving consumers spoiled for choice on what was once a luxury item.

High-definition televisions, many with internet capabilities and some with 3D options, are flooding the market - putting retailers under pressure to move stock and creating bargains for shoppers.

Figures received by the Weekend Herald show the steady decline in prices. An entry-level 42-inch THP42X10 Panasonic TV that sold for $2099 in June 2009 now retails around $800.

The fall is almost consistent with figures from the Department of Statistics showing that from the June 2002 quarter to the September 2008 quarter, TV prices fell by a total of 79 per cent.

In 2004 a flat-screen LCD television cost on average $3500, but by 2008 the average price had fallen to about $1400. These days, $500 is all it takes to buy a full high-definition 32-inch Sony Bravia, complete with a wireless adapter for internet connectivity, while at Noel Leeming, $450 buys a Samsung 22-inch full high-definition LCD TV.

Yesterday, Chris Lim was in a Hamilton department store eyeing a home theatre system but said he was likely to be back soon for a TV too.

Mr Lim, 25, said he felt ripped off after buying an entry-level 42-inch Phillips Plasma television three years ago for $1500, which he would probably have difficulty selling on Trade Me now.

For the same price he is now looking at a television around the same size but LED/LCD, 3D and with full high-definition. An added sweetener was the 12 months interest-free terms.

"It's hard to believe how much they've dropped in price, so I do feel a bit ripped off about it," Mr Lim said.

Jason Bell, Noel Leeming general merchandise manager, said it was a good time to buy.

Mr Bell said the television market by value had grown around 5 per cent to about $450 million to the end of November last year, with more than 400,000 TVs sold in the past year.

There had been a 16 per cent increase in unit sales and the average TV price had fallen by 13 per cent.

He said there had been a big spike in the number of television sales between July and September last year with many people upgrading to bigger sets in time for the Rugby World Cup.

And sales activity was unlikely to taper off with the changeover from analogue to digital television broadcasts starting this year.

But can you expect to see prices fall even lower?

"You have the combination of a strong New Zealand dollar and one of the most competitive retail sectors," Mr Bell said.

"This has driven prices down but has it reached rock bottom? In general, technology moves downwards until the next generation of TVs comes in."

Mr Bell said TVs were not alone in suffering price erosion, with digital cameras, Blu-ray players and high-definition camcorders all falling in price.

"Digital cameras are still declining in price, they are being taken over by smartphones with cameras on them."

John Albertson, chief executive of the New Zealand Retailers Association, said the low prices were great for buyers but had placed more pressure on retailers to sell greater volumes.