“Plasma prices continue to free-fall as good availability and wide acceptance of the product spur retailers and manufacturers to maximize their sales opportunities”
NPD Group

The NPD Group released the May 2004 edition of the NPD Consumer Electronics Price Watch, a monthly pricing monitor that provides a top-line look into the average selling price of technology products being sold in the U.S.

The NPD Consumer Electronics Price Watch is based on 27 of the best selling product categories in the consumer electronics space, which includes a cross-section of the products people buy and is made up of a “market basket” of the most frequently purchased electronic products, including televisions, PCs, cameras and media players.

During the month of May, retail prices for the CE Price Watch market basket of goods fell another 3.1 percent, the sharpest sequential drop since last November. The overall value of the basket of 27 key electronics items now stands at $12,362, down more than $1,000 since the start of 2004 and almost $2600 since May 2003. Over the past year that represents a decline of 17.4 percent.

42-inch Enhanced Definition Plasma TVs, which dropped $86 from April, 32-inch Direct View TVs, which were down $52, and portable DVD players, which fell more than $30, led this month’s price drops. Other large dollar decliners were 15-inch notebooks, which fell $65.

“Plasma prices continue to free-fall as good availability and wide acceptance of the product spur retailers and manufacturers to maximize their sales opportunities,” said Stephen Baker, The NPD Group’s director of industry analysis. “Prices are especially aggressive on the entry-level models where form factor and design weigh more heavily on the buyers decision than brand and feature might for a more premium buyer.”

On the upside, standard DVD players rose 11 percent from April to May and portable CD players jumped up 9 percent, or $3, from April’s all time non-holiday low. The most basic single-disc DVD players are becoming a shrinking piece of the market as manufacturers increasingly focus on models with step-up features like an integrated VCR or progressive scan.

“Pricing on portable CD players is likely to remain constant at this price level,” Baker added. “Despite their mature status and low price, this category has seen some trends towards falling price levels over the part three months as selling prices have dropped below $35 for three consecutive months for the first time.”