A lack of knowledge among US retail salespersons regarding recent improvements in plasma technology is blamed for the high proportion of recommendations given for LCD sets.
More than three times out of four, sales staff steer customers to a liquid-crystal display set rather than a plasma screen, according to a study by JD Power and Associates.
Based on the results of a mystery-shopper survey it carried out, analysts suggest that shop assistants don’t really know much about the differences between LCD and plasma.
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The refund rate on LCD TVs has increased to 25-30 per cent in North America despite a drop in prices by branded TV retailers.
Many vendors reduced prices for 32-inch and 40-inch LCD TVs in May in an attempt to boost sales.
However, the move has led to a rise in the number of products being returned as viewer expectations about the quality of high-definition images rises.
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Sales of LCD and plasma TVs showed a 53 per cent year-on-year increase in the US for the first quarter of 2008, with more than 7.5 million units sold.
This represents a 7 per cent increase over industry projections for the period.
While analysts in Japan have attributed a 35 per cent increase in flat-panel TV sales during the first half of June to the upcoming Beijing Olympics, industry executives in the US are being more cagey.
But what those attending the DisplaySearch TV Supply Chain Conference in San Diego did agree on was that despite the state of the US economy, the North America TV market remains robust – so far.
The growing market for high definition television in Japan has received a further boost with the start of a VOD service by the country’s largest retail chain, Tsutaya.
Users will be able to download titles from home using the acTVila portal that is popular on Japanese plasma and LCD HDTVs.
They will have 48 hours to watch the films or TV shows as many times as they want.
The new service from Tsutaya, which counts 27.2 million members at its 1,330 branches across Japan, is the latest sign of the growing popularity of HDTV in the country.
Panasonic is to roll-out sales of a range of Blu-ray recorders in Australia, making it only the second country after Japan to receive the devices.
A 500GB Twin High Definition Tuner and VIERA Link model is to go on sale this month as well as various lower-spec recorders, the first 46” plasma TV and new 37” Full HD LCD TV models.
Paul Reid, Panasonic Australia’s Director for Consumer Electronics Group, described the move as a “significant breakthrough” for Blu-ray.
Over 21 million LCD TVs were sold in the first three months of 2008 compared to 2.8 million plasma sets, according to a data compiled by research firm DisplaySearch.
The total number of TVs sold during the period was 46.1 million, up only 1% compared to sales in 2007.
The slow-down in sales is largely attributed to a weaker US economy.
TV screens sized 32 inches or smaller and high-definition TV-viewing PC monitors are proving to be a popular option for many price-conscious consumers in emerging markets, such as China, India and Russia.
This goes against the forecasts of LCD screen-makers who had expected premium 40-inch sets to be the biggest sellers and spent heavily in a race to build larger factories suited for larger panels.