Consumer Electronics prices to go up in 2009

If you see a good deal on TV or AV this Christmas – go for it, as the days of cut-price electronics are about to come to a shuddering halt. Home Cinema Choice has talked to a number of CE companies, both specialist and mainstream, and all are now warning that their prices will rise significantly in 2009.

The weakness of the pound against the Euro and the strength of the yen are principal factors in what will be very apparent price hikes throughout the coming 12 months.

‘There’s no way to avoid it, ‘Pioneer product specialist Jim Catcheside told HCC. ‘We’re currently preparing our 2009 ranges and entry-level products are coming in higher than the step-up models we have now.’

Pioneer recently reduced the average selling price of its Kuro plasma TV range by £500, but the price-drop will apply only to stock already in the country. ‘I think people will kick themselves if they hang on thinking things will continue to get cheaper,’ said Catcheside. ‘They won’t.’

Shinichi Mizuuchi, Toshiba’s Group manager for Overseas Sales & marketing, is responsible for the Japanese giant’s European DVD business. He told HCC: ‘We’re in discussions with our European sales offices at this moment regarding pricing for 2009, but the economic situation is creating real headaches for us. It’s going to be a difficult year.’

Companies are predicting prices rises of around 30 per cent in every category. One factor that could mitigate against the spiralling cost of TVs would be an oversupply of panels from the major glass makers. But production is already being curtailed at plants in Japan, South Korea and Taiwan, to prevent this.

Leading LCD maker Sharp has announced the closure of its older panel-making facilities, while other vendors are ‘controlling’ supply. HCC was recently invited to inspect Samsung's plasma factory in Korea, but to the embarrassment of our hosts, we found the plant completely idle upon arrival.

Market research firm DisplaySearch is predicting a drop in supply by nearly 12 million screens from previous forecasts. The category which will see the largest reduction in supply is expected to be 32in models.

The message is clear: buy it cheap while you still can. The UK is in the eye of an economic storm right now. AV products introduced earlier this year are being heavily discounted and the VAT cut to 15 per cent is an extra sweetener. But it’s not going to last.