LCD and plasma TVs: Consumers scale down their buying plans

The leading big-ticket item this holiday season will once again be the flat-panel television, according to the latest national poll of U.S. consumers by Consumer Reports, conducted October 30 to November 2. Nearly one-quarter of consumers (23 %) plan to buy an LCD or plasma TV before or after the holidays. But the results also reveal the sets bought may not be as big as models purchased last year, or as pricey.

About 10 percent of consumers said they have plans to buy a flat panel TV, but will wait until after the holidays to buy. The primary reason cited for waiting: The cost of a TV is too much to spend right now (43%). That suggests the economic downturn is putting a damper on TV-buying plans.

One quarter of consumers said they were delaying their TV purchase because they expected TV prices to go down. Indeed, steady price drops for TVs may help explain the lower prices survey respondents planned to pay this year compared to the last few—though the economy may of course also play a role.

The average amount consumers plan to spend for their new TV sets has fallen over the past three years from $1,600 in 2006 to about $1,100 this season. Last year, Consumer Reports found that nearly one-quarter of consumers (24%) were planning to spend $1,500 or more on their flat-panel sets.  This year, only 19 percent plan to spend that much. In the past men expected to spend more, but in 2008, both genders plan to spend the same on average.

Over one-third (35%) of consumers who plan to buy a flat-panel TV say they’ll be taking advantage of low or zero percent financing from the retailer. That’s an option that retailers say they'll be retaining this season, in spite of tightening credit and riding interest rates for credit cards. Store financing was a particularly popular option for younger consumers—those between the ages of 18 and 34 (48%).

Related: Holiday shopping off to a slow start; big Black Friday predicted Jumbo HDTVs with budget price tags Electronics holiday buying: Down but not out Black Friday comes early this year A happy, but less plentiful, holiday season More insight into holiday spending

While many consumers still lust for larger screens, smaller flat screens are also on the rise. Over half (51%) of TV shoppers are considering flat screens under 40 inches. This represents a increase of approximately 10 percentage points over last year. Again, the economy may be partially responsible, but other survey findings suggest the spread of flat panel technology to multiple sets in the home is also a factor. Of those considering a flat-panel for the holidays, 40 percent already have at least one in their home, including 15 percent who already have two or more.

Other poll findings include that fact that Black Friday, the frantic sales day that follows Thanksgiving, seems to be becoming even more geared to electronics this year.

For more on those findings, see the post on the Consumer Reports Money blog by Tightwad Tod, our specialist in frugal shopping.

—Paul Reynolds

Comments

[everett whitney]

TO: JM - " Dead after a short time ...?"

All HDTVs are relatively "young" - especially when compared to our now-extinct picture tube technology .... very often, regardless of Brand, these old CRTs still showed an image for 15-20 years.

How long AFTER base warranty these new, very special-application Computers may endue IS the unknown $64,000 question!

Yes, there ARE makers that DO offer / provide as options the (5) years, all-inclusive, In-home Service plans you posted about .... Always frowned upon herein for years by C.R. , since their studies suggest that about only 3 / 100
sets will fail.

BUT - if one can not readily afford to be "self-insured", that a personal decision which Must be made at the time of purchase ... these (5) years plans can be typically bought for Less than the cost of the initial repair out-of-warranty. In particular, these plans DO provide for a replacement HDTV " IF " that old one can not be repaired due to lack of needed component, too.

[JM]

I have A 42inch Sanyo Plasma TV it just went dead for no apperant reason I brought it 5/06 did not get the proctection plan and repair guy does not recommend repair
So my question is there any reason why Companys are not doing 5 year warranty or/are TVs not expected to last more than a year or two because of quality or workmanship or both
any reviews on life expectancy for tv's??

[Paul Eng]

To Lizzie:

For help on choosing an LCD or Plasma TV, see our HDTV Buying Guide:

http://www.consumerreports.org/cro/electronics-computers/tvs-services/tvs/tv-guide/index.htm

You can also watch our video:

http://video.consumerreports.org/services/link/bcpid1329233564/bclid1118125802/bctid1280500146

--Paul Eng
Web Senior Editor, Electronics

[Eli]

Lizzy.
From what I've been able to learn from much reading and from friends, Plasma may have a slightly better visual quality with deeper blacks and contrast, while LCD is slightly better with energy usage. Both have excellent color.
There are many things to take into account. When you find a model you like, go to their website and check the specs on the model. Look at contrast ratio. Plasmas tend to have a bigger ratio, like 100, 000 or 300, 000 to 1. LCDs tend to be smaller, 20,000 or 30,000 to 1. This means the contrast is much stronger in Plasmas, making the blacks and whites appear sharper. But many LCDs can match this with even smaller ratios. It's all about looking at them in person.
Another factor is do you want to plug your computer into the TV occasionally. If so, make sure the model has PC interface. AGain, the specs would tell you.
AND DON"T BE PRESSURED INTO BUYING NOW BEFORE XMAS OR ON BLACK FRIDAY!
I'm waiting to see what happens after BF and maybe even after Xmas.
Read the article below titled, "Money saving tip: Don't overspend on electronics." Everett talks in more detail about certain models.

[Lizzy]

I don't have a comment, I have a question. Which is better, a plasma screen or an LCD type?,and what about the "p" number count. What would be a good quality screen that displays crisp, clear picture? thank you. Lizzy

[Eli]

I too have decided to postpone my purchase, maybe even until just after Black Friday. By waiting, we can see how the BF sales went, and judge what to do next.

Everett has recommended the Panasonic TH42PX80U 42" Plasma 720p which CS also highly recommends. Sears will have it for $700 BF. I trust his judgment as he has been accurate on many issues.

I am also looking at the Samsung PN42A450 42" 720 Plasma at KMart for $700.

Also at Sears the Vizio VOJ370F1A 37" 1080 LCD for $700.

I will wait to see how these appear after BF...