U.S. Consumer Intent to Buy TVs Drops Sharply

EL SEGUNDO: Only 13 percent of U.S. consumers who haven’t purchased a TV set in the last quarter plan to do so within the next 12 months, according to a survey by research firm IHS iSuppli.

This is down from 32 percent in the first quarter of 2011. In Q1 2011, 66 percent of respondents said they do not intend to buy a TV set during the next 12 months, compared to 83 percent of respondents in the recent survey.

"The latest survey indicates a tremendous shift in preferences among an increasingly cautious buying public, unnerved by the continuing gloom of the economy," said Riddhi Patel, IHS iSuppli analyst. "The findings suggest a growing willingness among U.S. consumers to suspend—if not totally abandon—their ongoing love affair with the television."

HDTVs featuring liquid crystal display (LCD) technology continued to dominate TV purchases during the second quarter, at 86 percent. Plasma TVs accounted for the remainder.

Among U.S. consumers who recently bought TVs, the most important criteria for purchasing in Q2 2011 were picture quality, price and screen size. Brand name has become a less important factor in the purchasing decision "because of the diminishing price differential between different makes," IHS iSuppli said.

As for screen size, IHS iSuppli found a slight increase in buyers opting for 50-inch and larger sets. However, 38 percent bought TVs in the under-30-inch range, mainly for reasons of price, an unusually high percentage, the research firm found.

The use of Netflix among households was 66 percent for new TVs connected to the Internet.