In “Philips Warns On TV Business As Price Pressures Remain“, the Wall Street Journal reports that Philips (PHG) observed a 15% decline in television prices form the fourth quarter of last year to the first quarter of this year. PHG is under pressure to turn a profit in televisions as the company has lost money in this division for several years.
The troubles at PHG confirm the poor performance retailers like Best Buy (BBY) saw in televisions. From BBY’s last earnings report (March 24, 2011):
“The Domestic segment experienced a low double-digit decline in entertainment hardware and software, as well as TVs, as current consumer demand in new television technologies had not yet emerged as a significant revenue driver…”