3D TV’s Speed Up the Product Life Cycle for “Regular” HD TV’s

The introduction of 3D TV’s this year has triggered unexpected effects in the market for HD TV’s. Although all major players in the new 3D TV market, including Samsung, Panasonic, and Sony, have reached an agreement of using a skimming strategy to introduce this new technology to the market (with prices in the $2,500 range), adoption rates are on the increase. This increase in the adoption of this new technology has thus triggered a defensive response by the HD TV product lines in these and other companies.

The fact that many early adopters are drifting towards this new product and, as such, eliminated any possibility of product replacement in the HD TV market, along with the decrease in price of the product, has led the HD TV market in an unexpected swift arrival into the mature stage of the Product Life Cycle. Although the high margins been charged for 3D TV’s in this introductory stage is projected to make up for the future loss of profits in the HD TV market for the companies that have entered the former market, other companies such as Toshiba and Panasonic that are lagging behind in their entry to the 3D TV market may be experiencing significant problems in the recent future.

Sources: Various

Cristian Lacayo