Thinking of getting that new flat screen TV but are undecided on when to do it? Believe it or not, even with the chaos dominating the financial markets because of the credit crunch of 2008-2009, I believe the best time to do so is right smack in the middle of it. With the effects of the global credit crisis trickling down to many aspects of life as we know it, the demand for televisions (among other things) is being forecast to go through a major slump in 2009. Why then is it a good time to buy new televisions? Because the drop in demand will push manufacturers and dealers to bring down the price. This has actually been happening for a while now with many stores going on sale. Online shops like Amazon have been listing sub-$600 big screens TVs for some time now. One would not have imagined this a few years back when $2,000 LCD TVs were far too common a sight in appliance stores.
If you already have been saving up or have the money on hand for that new acquisition, then I would suggest that you head on over to the store and go get that shiny new LCD or Plasma TV. Or, you could wait it out a bit more and see if stores will give further discount. This, I believe, is highly likely given the predictions of the research firm DisplaySearch.
While sales for last year (2008) were about 3% higher, to 206 million units, compared to 2 years ago (2007), this probably won't be the case for 2009. DisplaySearch is forecasting a whopping drop of 18% across the board (all TV types) in revenue and a 1% reduction in unit sales worldwide. The LCD TV segment will be hardest hit as it is being predicted to drop by 16% in revenue, down to $88 billion, despite a 17% projected increase in shipments. Manufacturers are just sacrificing profits and concentrating on securing more market share by slashing the selling prices. This is bad news for the retailers and dealers who will definitely take a beating due to thinning profit margins but is a bit of a good news for consumers looking to take advantage of the discounts.
These are the good ol' market forces working its magic and its mayhem. If you already have the money for that planned purchase, go for it! This is the best time to spend. Doing so might even help stimulate the economy which is always a good thing.
The author, a couch potato and a blogger, runs two consumer-related blogs about the television. One is an all-around television blog while the other is a Plasma and LCD TV Repair site.
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