Originally Posted by irfan
Without knowing their breakeven points, profit margins, sales expectations, company goals, etc, with the different pricing you cant really assume that its bad for them. im sure their assumptions is that their company will in fact be better off if things pan out like they hope.
I'm sure they caved to brick-and-mortar retailers demanding they "do something" about "showrooming" "or else".
I'm not as convinced they actually have figured out that this is going to make them any more money; in fact, I'd be very surprised if they believe it will. What it's going to do is open the door to the Huaweis and Hisenses of the world and create a big opportunity for Vizio to get off the mat and expand its presence.
All that expensive "branded" stuff that really doesn't outperform the "second tier" stuff in the eyes of most consumers by very much is going to now look very expensive.
Honestly I can't forecast the sales numbers, but I can tell you this: As things stand, the better Samsung plasmas will largely retail for $500-1000 more than last year's models did even when just announced. That's going to significantly dent sales volume
; it simply has to. And Samsung itself is getting the same price at wholesale it got last year. OK, it's one example and maybe some others aren't as bad (although I see the same thing occurring with D series LCD >> ES series LCD). Really, as the saying goes, "you do the math".
They either (a) lose sales entirely or (b) push people to lower priced, lower-margin products. How is this a win?