HDTV Sales Could Boost Camcorders, DVRs

High-def owners may seek products to enhance their viewing experience.

By Phillip Swann

Washington, D.C. (October 10, 2006) -- The rise in High-Definition TV sales should spark a similar increase in sales of high-def camcorders and Digital Video Recorders.

That's the conclusion of an article in today's Investor's Business Daily.

The newspaper reports that high-def owners will likely buy HD-related products designed to enhance their viewing experience.

Sony and Sanyo have introduced HDTV camcorders; Sony and Toshiba are marketing new high-def DVD players; and TiVo and the cable and satellite TV providers are offering high-def recorders. In addition to those products, one industry expert says HDTV owners will buy new Surround Sound systems as well.

"The current upgrade cycle for TVs is going to create an echo cycle in the next few years where people will be buying new components, whether that be a High-Definition DVD player or an HD TiVo and sound systems too," Sean Wargo of the Consumer Electronics Association told the newspaper.

However, some industry analysts caution that the HD accessories are still a bit pricey. (For instance, TiVo's new HD DVR is priced at $800.) They say the sales talk is coming from manufacturers looking to sell new products.
"It's going to take a little more time," said Mike Abt, president of CE retailer Abt Electronics. "They (the manufacturers) really hope they'll be able to sell $1,000 or $1,200 camcorders instead of the $500 ones that people are buying today."

But everyone agrees that sales of HDTV sets will continue to rise.

"This holiday season we're going to see a lot of volume in HDTVs, particularly as retailers offer midsize LCD televisions very promotionally," said Ross Rubin, an analyst with NPD Techworld. "I expect we'll see very heavy discounting on 27-inch and 32-inch LCD televisions."

Current Analysis, another research firm, said recently that the average price of a 42-inch Plasma TV fell nearly 10 percent over the last 60 days.

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