Slump in TV Sales May Push Smaller Makers Out

Likes of Hitachi, Pioneer don't have staying power of Sony and other giants
By Harry Kimball,  Newser Staff
Posted Jan 20, 2009 2:09 PM CST
Slump in TV Sales May Push Smaller Makers Out
Sony is poised to emerge from the slump, unlike some of its smaller competitors.   (AP Photo)

A steep decline in demand for flat-panel TVs could push smaller manufacturers out of the market, the Wall Street Journal reports. As the economy sours and larger makers achieve economies of scale, the price gap between top brands and cheaper rivals has shrunken dramatically. The top five makers accounted for 60% of sales in the third quarter of 2008, up from 53% year earlier.

The larger manufacturers, like Sony and Panasonic, were able to offer deep discounts during the poor holiday season because of efficiencies. Consumers already wary of budget models flocked to the sale models, and retailers are taking note. One executive said, given the situation, it was “extremely possible” that smaller, cheaper competitors like Vizio and Pioneer “are going to be squeezed.” (More flat screen TVs stories.)

Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.