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HDTV boom over as Best Buy disappoints

December 13th, 2006 · No Comments

Is the boom time over for HDTV in the States? Some analysts believe the market has now peaked after leading CE retail chain Best Buy posted disappointing third-quarter financials. Its 8.7 percent rise in net income, to 150 million dollars, was less than expected.
The chain says that pressure on retail prices reduced its gross profit margin significantly. Cut-price rival Wal-Mart has begun offering its customers branded screens, such as Sony BRAVIAs, at highly competitive prices.
A spokesman for Best Buy, which has had growing success with its in-store cutom installation operation Magnolia, countered, “We don’t just look at it as TV business, we look at it as the home theater experience business.”
Danielle Fox, a retail analyst at Merrill Lynch, believes that the TV product replacement cycle is maturing.

Tags: Home cinema · LCD TV · Plasma · Trade

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