Sales of a Million 3D TVs Possible This Year, Some Say

In dollars, 3D TVs could be 6 percent of sales, potentially providing a profitable niche for retailers struggling for an economic rebound, the executives said. The pricing is expected to start around $2,000 for a 40-inch set sold without 3D glasses or a transmitter, they said. Generally, sets capable of passing a 3D signal will sell for $500 to $1,000 premium over standard TVs, depending whether they're packaged with glasses or transmitters, industry officials said.

While pricing wasn’t available for many models, Vizio’s XVTPRO 47- and 55-inch 3D TVs are expected to arrive in August at $1,999 and $2,499. Vizio also will have a 72-inch model, but hasn’t set pricing, the company said. Sony, according to retailers briefed on its plans, has quoted preliminary pricing on its XBRLX900 series of 3D-ready Bravia LCD TVs of $1,999 for its 40-inch, $2,499 for its 46-inch, $3,299 for its 52-inch and $4,199 for its 60-inch. But Sony spokesman Greg Belloni said pricing hasn’t been set and that the prices we got from retailers weren’t accurate because they're constantly changing. The LX900-series sets will have the necessary transmitters and will be packaged with two sets of 3D glasses. Two other lines, the XBR-HX900 and XBR-HX800 series, will require separate purchase of the transmitter and glasses, Sony said. The HX900 52 and 46-inch models will be LED backlit and feature a “frameless” design, while the HX800 55-, 46- and 40-inch sets are edge lit, Sony said. All models will have a 240 Hz frame rate.

LG will have 47- and 55-inch 3D TVs to go along with a front projector and Blu-ray 3D player, the company said. Samsung and Panasonic are expected to field multiple lines of 3D TVs, though neither has released details. Sharp hasn’t finalized its lineup, Bob Scaglione, senior vice president of marketing, told us.

“I do think there will be a value for 3D for retailers because consumers are going to want to see and experience it and it will drive customers to stores,” said Mark Shaw, electronics merchandise manager at Nebraska Furniture Mart. “Whether they buy 3D or not, that’s another question. But they are going to want to see it.”

Among the manufacturers we polled, many said they view 3D not just as another feature, but rather an opportunity to sell a next-generation TV. Most are preparing to deploy in- store displays with retailers that would include 3D TVs and glasses to demonstrate the technology. The initial sales of 3D sets may favor retailers with the floor sales staff needed to explain the technology, CE executives said. Retailers estimated it could take 15 to 20 minutes to explain the technology and sell a customer on the concept. The sale of a 3D TV could yield sales of an additional five to 10 Blu-ray 3D titles depending on availability, BrandsMart President Michael Pearlman said.

“We really look at TV as a new type of TV and not simply a new feature,” said Jim Sanduski, senior vice president of sales at Panasonic. “We are looking at a retailer base that’s going to be able to demonstrate it on the retail floor. We think it needs to be seen to be appreciated and will have some in-store displays.”

Retailers see the arrival of 3D TVs as a means for competing against online business that has driven down the price of TVs. With vendors jockeying for display space at retail for their 3D-capable sets, retailers said they may seek concessions from manufacturers to get floor space and the attention of sales staff. “Let’s say a brand is allowing their products to be sold on the Internet, we may not focus on that brand’s 3D offering,” Pearlman said. “We may have the model, but we'll just have it at a cheap price and have people say ‘I'm sorry I can’t demo that one, but I can demo these.’ This is going to change marketing back to the way it used to be for a lot of things we sell.”

Some specialty dealers also will use 3D as springboard for in-store seminars that will explain the technology and lay the groundwork for a possible sale, said retailers we polled. For example, Bjorn’s Audio Video in San Antonio has scheduled a seminar for next week that will cover technology highlights from CES, including 3D, President Bjorn Dybdahl said. Bjorn’s is hoping to convince Sony at a dealer meeting this week to help it develop a seminar that would occur in advance of product shipments, Dybdahl said. “I think it’s a great opportunity to start building the excitement,” Dybdahl said.

As with most new technologies, 3D sets will be positioned at the high-end of most lines and confined to 40- inch and up sizes. Some high-end TV sales could slow as those consumers wait for 3D-capable sets to arrive, hhGregg CEO Dennis May said. “You may see some reservation at the high end of the business” where consumers seeking an LCD TV with LED backlighting hold off buying the set until 3D is available, May said. “That won’t so much be the case in 32- and 40-inch that’s already at such a great price they will buy it.”

Hand in hand with the 3D TVs will be Blu-ray 3D players. Samsung’s BD-C6900 was expected soon to be available at Amazon at $399, but some dealers questioned the pricing given that PS3 at $299 will be firmware-upgradeable for Blu-ray 3D. A more competitive price for Blu-ray 3D players might be $249 or $279, Shaw said. “If the PlayStation 3 is $299 with all it can do, if I'm a 3D person, I'm going to buy it,” Shaw said. “You will need a standalone player to be at $279 or $249. I just don’t see how it’s more money.”