Why Pioneer struggled in the States
While the questions continue to fly about the decision by Pioneer to pull the plugs on its display business, some interesting market analysis from the USA shows just why the company struggled to make headway even in a country where the big-screen TV is king.
Pulled together by trade journal TWICE (This Week in Consumer Electronics), the research and opinion from industry analysts shows that not only was Pioneer's presence in the US plasma market shrinking fast last year, but also that even high-earners are tight-fisted when it comes to buying big-screen TVs.
In the last quarter of 2008, Pioneer achieved just 2.6% of a fast-shrinking plasma market in the States, down 4% on the previous quarter and 9% on the same period in 2007, according to analyst DisplaySearch. That put it in fifth place in the US plasma sales stakes, behind the likes of Panasonic and Samsung.
Even well-heeled US consumers weren't too sold on premium plasmas
But research by analyst iSupply suggests it's unlikely the company's premium-priced Kuro plasmas were going to achieve much traction in the US market, even among high-earners. June 2008 figures suggested that 60% of those earning $200,000 (about £140,000) wouldn't spend more than $1500 (just over £1000) on a flat-panel TV.
And by December 2008, those same high-earners were aiming to spend $1000 (£700) or less on a flatscreen.
That provided a serious problem for Pioneer, whose Kuro 50in TV, even in the highly competitive US market, carries price-tickets starting at around $2500 (£1700), discounted from $4000 (£2750).
Industry analysts reckon the bigger players will take up any slack left by the impending departure of Pioneer from the US TV market, but it seems the company isn't alone in failing to make money out of plasmas in the USA.
Stateside manufacturer Vizio also announced that it's dropping plasma screens from its range, having added them last year. It says the plummeting prices of LCD screens make them a much more attractive choice for consumers in the current economic climate.
- Andrew Everard's blog
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Comments
I may be a little blinkered (or as an enemy would say ... 'thick') but I thought it was well known that the 'plasma' was a better tv ?
It’s unfortunate that it has come to this, but it was time for this “GOLIATH” to fall. I am a Pioneer Elite dealer in southern California and have observed Pioneers cocky attitude for some time. No change No sale. This company has not adapted well to current economy and the executives at Pioneer are fat dumb and happy in Long Beach CA. OOPS! I didn’t just say that, but this may be the problem. The real victims here are the working class trying to pay bills and survive. Pioneer will be missed but let’s face it folks. It’s over.
A real dealer in SO CAL.
At the end of the day, they manufactured the best TVs in the world, period! If the average pleb is happy with a Lousy Crystal Display then so be it. The world took a step back when the Concorde was taken out of service and now the Plasma TV is going the same way. I'll wait for another technology but this household is strictly staying Lousy Crystal Display free...
Shocking news to hear about Pioneer pulling the plug on the Plazma TV market. Being of a 'middle England, middle income demograph' I have just bought a Panasonic TH50PZ81 @£1,150., a Pioneer DV-LX50 Player @ £200. and a Marantz ES7001 soundbar @ £400 (all courtesy of the July 2008 What HiFi mag!). I can't access the online forum page at present but do I need an AMP as well?? (I am looking at the SONY STR-DA2400ES (£400) or either an ONKYO TX-SR875 (£500) or an ONKYO TX-NR905 (£700).. If I need an AMP, which of these three would best complement my system?? Any advice would be most welcome! With kind regards from Lincoln, UK. Alan T8.
Unfortunately TV's are almost seen as disposable. People just don't keep them as long; and the technology is constantly changing. Last year's state of the art is this year's average TV. I think people are reluctant to spend so much on something that may be bettered in a year at half the price.
Don't worry Proffski, Panasonic will continue to make the worlds best Plasma's, and at a realistic price!