Sony, Samsung Try to Limit TV Discounts

Their policy could benefit retailers by dampening price wars

   

Prices for large-screen TVs have tumbled in recent years. Now two major TV manufacturers are trying to stem the declines. Sony (NYSE:SNE) and Samsung have announced policies meant to curtail steep discounts on TVs offered by some retailers.

Under the new policies, the companies will set minimum prices for their TVs. Retailers that sell below those minimum prices could find themselves cut off from financing , or even without a supply of TVs from the manufacturers.

SamsungTV Sony, Samsung Try to Limit TV Discounts
Sony Losses Continue to Climb

While Sony and Samsung are acting to boost their own profit margins, the new policy could also benefit retailers like Best Buy (NYSE:BBY) and Target (NYSE:TGT) by dampening price wars with competitors, The Wall Street Journal notes.

Best Buy in particular has been stung by declining TV sales as consumers visit its showrooms to look at TVs, but then make purchases at heavily discounted online retailers like Amazon (NASDAQ:AMZN).

However, consumers have come to expect falling prices for TVs. With a number of other manufacturers in the market, Sony and Samsung risk pricing themselves above what consumers are willing to pay.

Other retailers, including LG, said they were unwilling to interfere in transactions between consumers and retailers.


Article printed from InvestorPlace Media, http://investorplace.com/2012/05/sony-samsung-try-to-limit-tv-discounts/.

©2014 InvestorPlace Media, LLC

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