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Average Selling Price of Tech Products Continues to Decline: Plasma TV Prices Dip Below $2,500 According to Latest Results From NPD CE Price Watch (3/12/2004)

Average prices of many technology products were down during the month of September according to the latest NPD Consumer Electronics Price Watch, a monthly pricing monitor from The NPD Group that provides a top-line look into the pricing of tech products being sold in the U.S.

September prices for a market basket of technology items, including plasma TVs and digital cameras, fell 18 percent versus September 2003, the sharpest year-over-year percentage decline since April. Overall pricing was below $12,000 for the second consecutive time as total pricing for the Price Watch basket of goods fell $2,533 from last September's level. Since NPD began its Price Watch monitor in January 2003, the products tracked have fallen in price more than $5,300 or 31 percent.

September results were driven by continued pricing declines in the display industry. Plasma TVs dropped $250 month to month, a decline of more than 9 percent, to an average retail price of $2,467.

"This was the first time the average price of Plasma TVs has dipped below $2,500," said Stephen Baker, director of industry analysis for The NPD Group. "This was the direct result of an influx of under $2,000 models that began to hit store shelves right after Labor Day."

Other flat panel products like the 20-inch LCD TV and the 17-inch LCD PC monitor also saw their most significant sequential price declines of 2004 in September. Both of these categories benefited from growth in supply and resulting cost declines that have rippled through the supply chain down to the retail buyer. Twenty-inch LCD TVs hit an all-time low of $857, nearly $200 below their average price at the start of the year. Seventeen-inch LCD monitors, whose sales have been weak for the past year as flattening, and in some cases increasing, price trends served to lessen demand, saw prices fall 4 percent versus 2003 to a new low of $445.

"Other key categories that helped push prices lower included digital cameras, which fell 31 percent from 2003, and DVD Home recorders, which were down 34 percent," Baker added. "Both recorders and digital cameras also fell sharply from August and both established all time low prices in September as well."

The average 3 mega-pixel digital camera now sells for $207 and seems poised to be under $200, making it the hot product for the holiday season. DVD recorders, while still expensive at $331 are down 51 percent, almost $350, from their price in January 2003 and have fallen further and faster than any item in the Price Watch priced under $1,000.

About the NPD Consumer Electronics Price Watch

The NPD Consumer Electronics Price Watch monitors pricing on 27 of the best selling product categories in the consumer electronics space, which includes a cross-section of the products people buy and is made up of a "market basket" of the most frequently purchased electronic products, including televisions, PCs, cameras and media players.

www.npd.com