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Re: Still no deflation: Disinflation then lots of inflation
Electronics is in a class of its own when you apply hedonic measurements.
Originally posted by GRG55
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Except if you plan to buy another flat panel TV this holiday season...
Flat-panel TV prices set to dive, analysts say
By PETER SVENSSON , AP Technology Writer, Technology / Business
(AP) -- A combination of weak consumer spending and a peak in manufacturing capacity will push prices for flat-panel TVs down to unprecedented lows this holiday season, according to analysts.
David Barnes, analyst at NPD Group's DisplaySearch unit, said prices look set to decrease rapidly starting on "Black Friday," the day after Thanksgiving, and lasting through next year.
It's even possible that 32-inch LCD TV sets, which now usually cost $600 to $700, will go as low as $350 in stores. That's a significant level: It's close to the long-run average price for a TV in the U.S., Barnes said Tuesday.
He believes these smaller sets will be the big sellers this year, as consumers, and possibly also credit-card companies that had fueled big-ticket spending, tighten their belts.
"We're about at the point where the 32-inch set will be the commodity," Barnes said Tuesday.
Larger 40- or 42-inch sets are already dipping below the $1,000 level, another important psychological barrier.
By PETER SVENSSON , AP Technology Writer, Technology / Business
(AP) -- A combination of weak consumer spending and a peak in manufacturing capacity will push prices for flat-panel TVs down to unprecedented lows this holiday season, according to analysts.
David Barnes, analyst at NPD Group's DisplaySearch unit, said prices look set to decrease rapidly starting on "Black Friday," the day after Thanksgiving, and lasting through next year.
It's even possible that 32-inch LCD TV sets, which now usually cost $600 to $700, will go as low as $350 in stores. That's a significant level: It's close to the long-run average price for a TV in the U.S., Barnes said Tuesday.
He believes these smaller sets will be the big sellers this year, as consumers, and possibly also credit-card companies that had fueled big-ticket spending, tighten their belts.
"We're about at the point where the 32-inch set will be the commodity," Barnes said Tuesday.
Larger 40- or 42-inch sets are already dipping below the $1,000 level, another important psychological barrier.
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