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Samsung, Sony begin enforcing minimum prices on HDTVs to grow margins - Page 2

post #41 of 48
This isn't as simple as it seems. Such decisions always have an element of collusion in them. For instance - if only Sony did this, Sony sales would suffer as customers bought cheaper Samsung TVs. The only way to avoid this, is to ensure your competitors also follow the same policy.

Of course, just because the decisions came at same time does not mean the companies sat together and colluded. For instance Best Buy might have held a gun to their heads and forced them to impose such a policy, otherwise BB would stop carrying their products. In such a case the companies need not collude.

Irrespective of whether this action is enforced by Sony & Samsung or initiated by Best Buy, it is still anti-competitive. For that matter, even Apple's policy of enforcing a MSRP originally, was anti competitive. Even major designer houses have found it difficult to enforce a Minimum Price because it is anti competitive.

Why is this anti competitive? For the simple reason that it handicaps efficient retailers who can sell at lower prices and still make profits and protects the inefficient guys. Could potentially drive the efficient guys out of business by handicapping them this way.
post #42 of 48

Since when did AI start reporting on HDTV news.
 

post #43 of 48
Quote:
Originally Posted by jragosta View Post

If the Manufacturer sells a million units to retailers at a given wholesale price, enforcing a retail price does not net any more money for the manufacturer. So how is setting a minimum selling price going to help Samsung and Sony?
 

 

 

The deleterious effects are not on this sale but on the long term brand value.

 

The discounted retail price quickly becomes the norm demanded by all future customers. Wholesalers demand a lower wholesale price to maintain their profit margins. The manufacturer is then forced into the position of  developing the same product at lower and lower price points over time. This is likely to happen any way but manufacturers want to slow the process any way they can.

post #44 of 48

Well Sony hasn't been a premium product for a while, and their anti-customer attitude when it comes to things like the PS3 Linux feature, and trying to ram blue-ray, mini-disc, memory-stick and such down the customer's throat doesn't help. Fixing stuff under warranty, no problem there.

 

I ditched all my Sony kit for Canon anyway, but it's time to renew that stuff and I can't justify replacing any of it until 3D HDTV's standardize and if there's any HDTV+ resolution version in the pipe. Existing 3D cameras are an embarrassing joke along with the 3D TV's. So I'm waiting, but I honestly don't even use my TV. I have the cable box plugged into a computer monitor.

 

Samsung is not, and has never been a premium product except maybe inside Korea itself. If you watch any Korean drama's you'll usually see Samsung and LG props everywhere. In American shows, you see mostly Apple and the occasional Dell or Toshiba. The next time you watch your 6pm news hour, observe if the news anchors are using iPad's, Macbook Pro's, or something else. 

post #45 of 48
Quote:
Originally Posted by Misa View Post

 

Samsung is not, and has never been a premium product except maybe inside Korea itself.

 

When Samsung comes out with its $9000 OLED TVs later this year while you play with your iPad, will it change your mind?

post #46 of 48
Quote:
Originally Posted by angler View Post

Since when did AI start reporting on HDTV news.
 

1) It involves Samsung, and therefore provides an opportunity to allow Appleinsider users to "know their enemy", even if it is, strictly speaking, a separate business unit in a very large conglomerate.

2) Apple is strongly rumored to be getting into the Television appliance business in the very near future.  We may as well have some background understanding of the state of that sector as Apple prepares to enter it.

post #47 of 48
Quote:
Originally Posted by iBanned View Post

 

When Samsung comes out with its $9000 OLED TVs later this year while you play with your iPad, will it change your mind?

 

Hyundai makes a nice luxury coupe but that doesn't make Hyundai a premium brand.

post #48 of 48
With the electronics department of every Walmart in the country looking like an Apple store, you would consider Apple a luxury brand?
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