Private labels also known as house brands are creating a lot of competition for flat-panel TV brands. The increased level of competition is slashing prices to all-time lows and making margins much thinner.
The one caveat of these private label TV’s is that the quality isn’t as good as name brand products such as Sony and Samsung. After some analysis, we found house brand TVs now own 25% of the market share.
When one out of every 4 TVs bought is a private label brand, big-name brands are having to lower their prices to compete. It seems that private label TV’s will continue to lower sales prices.
When it comes to LED TV’s they’ve dropped 56% in price in the past year. LCD prices have decreased as much as 29%.
Although the increased level of competition has eaten up market share, people such as Rob Blythe are convinced that premium level features like IPTV and 3D will still attract buyers to name brand products.
This suggests that the future is still very bright for TV manufacturers with premium-level features.
They’ve seen as much as one-third of living room TVs being bought with 3D features.
Panel sizes have also started to increase to encourage buyers.