iSuppli recently reported that prices on LCD TVs have moved upward in the US in July by 7.2% from June and 2.8% from last July. Given that TVs and other consumer electronics generally go through deflationary cycles, a year-over-year increase in pricing is unusual. iSuppli claims the price increase is being driven by mix as new TV technologies (LED backlighting, 3D, faster refresh, built-in internet) are pouring into the market.
This is good news for CE retail chains such as Best Buy (BBY), HH Gregg (HGG) and lots of smaller stores and chains. In the early part of a TV upgrade cycle such as this, these chains tend to do much better than wholesale clubs and mass market merchants as consumers are looking for more handholding and explanations around their purchases. Also, CE chains tend to have an inventory advantage (selection and depth) when a new product is still not at mass market pricing levels.
Complete Story »