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Shoppers spurn technology
By Liana B. Baker |
December 16, 2010, Thursday
|
Print Edition
Print Edition
FANCY new features like 3D screens and Internet connectivity have failed to inspire American television shoppers, dashing a hoped-for recovery in the global consumer electronics industry.
Manufacturers such as Sony, Samsung and Sharp are learning that features such as razor-thin LED TVs are just not enough for television sales to stage a comeback in the United States.
On Tuesday, Best Buy Chief Executive Brian Dunn told analysts that sales of 3D TVs had fallen behind industry expectations.
"There was confusion about 3D early (on)," Dunn said. "It was a little short on content."
The largest US electronics chain cut its full-year profit forecast, and its disappointing results put pressure on shares of Best Buy and other electronics companies.
"The stock got killed today," said Frank Ingarra, a co-portfolio manager of Hennessy Funds, which holds 32,000 shares of Best Buy. The retailer's shares dropped nearly 15 percent on Tuesday to close at US$35.52.
Investors want to know why retailers pushed a new generation of TVs after many consumers had just upgraded to flat-screen sets this year.
"People don't see the added benefit of 3D," Ingarra said. "When you get into US$2,000 TVs, you start thinking: 'At what point do I really need this?'"
Manufacturers such as Sony, Samsung and Sharp are learning that features such as razor-thin LED TVs are just not enough for television sales to stage a comeback in the United States.
On Tuesday, Best Buy Chief Executive Brian Dunn told analysts that sales of 3D TVs had fallen behind industry expectations.
"There was confusion about 3D early (on)," Dunn said. "It was a little short on content."
The largest US electronics chain cut its full-year profit forecast, and its disappointing results put pressure on shares of Best Buy and other electronics companies.
"The stock got killed today," said Frank Ingarra, a co-portfolio manager of Hennessy Funds, which holds 32,000 shares of Best Buy. The retailer's shares dropped nearly 15 percent on Tuesday to close at US$35.52.
Investors want to know why retailers pushed a new generation of TVs after many consumers had just upgraded to flat-screen sets this year.
"People don't see the added benefit of 3D," Ingarra said. "When you get into US$2,000 TVs, you start thinking: 'At what point do I really need this?'"
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