A combination of a “deteriorating economy” and over production of smaller sized televisions by U.S. manufacturers has caused a significant decrease in sales for Sony and Panasonic. Ironically, an optimistic sales benchmark for these products is supposed to be one aspect facilitating future economic recovery.
-Sony’s sales increase prediction: 67%
-Panasonic’s sales increase prediction: 33%
It makes sense that inventory of LCD televisions has recently increased as a result of a recuperating economy after an economic slump in early July and beforehand. Supply is now higher, allowing Sony and Panasonic to lower their prices, in turn attracting more demand from consumers. Supply should continue to bounce back.
-2 extra weeks of inventory in U.S.
A decrease of sales in China could be the result of a decline in trade with foreign nations. For either country in the trade relationship, a lack of supply and higher prices might have repelled consumers significantly. Panasonic or Sony may have also attained a surplus of smaller sized televisions, those in lower demand, and they are now lacking in sales.
Above all, it is important for these two companies to understand the specific consumer demand which is larger sized televisions, for people tend to replace their old televisions with newer and larger models at low prices.
-Television depreciation: 20%-30% per year
Personally, I think that Panasonic and Sony should have seen this decrease in demand for smaller televisions coming since larger televisions have been popular for a few years now. They should have decreased production of smaller televisions and increased production of larger televisions when this trend began.
ReplyDeleteAs the saying goes, "bigger is better" which is truly the thought process in general for consumers of televisions.