Planet Gadgets Gadget Blog

Hi-Tech TV sales up big for Circuit City

by Administrator

Circuit City’s recent recent report indicates what we’ve been suspecting for awhile, high tech televisions are beginning to sell like hot cakes.

Voracious demand for digital televisions, specifically flat-panel models, has helped lift sales at both Circuit City and rival Best Buy Co. Inc. (BBY.N: Quote, Profile, Research), which reported higher fourth quarter sales and earnings on March 30. Those products are also more profitable for retailers.

Consumers are craving flat panels TVs, and the increased demand is driving supply up and prices down. As more people purchase these feature rich digital televisions, more people will be ABLE to purchase them. This is the nature of any technological revolution, and the HDTV revolution is in full swing.

For Circuit City, selling these TVs has been easy:

“The end consumer demand is really so strong you really don’t have to discount and promote the product as much as you might think,” Scot Ciccarelli, analyst at RBC Capital Markets, said. He rates the stock “sector perform.”

These are great signs that bode to a rosy future for HDTV.  As the federally mandated switchover nears, more people are buying complete units then the number of people looking for converters.  This huge increase in digital televisions will also result in an increased demand for (and supply of) digital content.  The salad days of HDTV are upon us.