As a result of the pandemic, U.S. television sales jumped in 2020, but as the crisis subsided sales growth slowed in the first quarter of 2021, according to the NPD Group’s Retail Tracking Service.
Unit sales across all models were up 20% in 2020 compared with 2019, according to the NPD.
Sales of TVs were still up in the first quarter (ended March 31), but increased at a slower pace than in 2020. U.S. TV unit sales grew in the mid-teens. Sales will see tougher comps in Q2 (ending June 30) compared with 2020 when pandemic buying took hold, according to NPD.
Fueled by stimulus checks and improving economic outlook, NPD said the mix TV models and cost increases overall saw average selling prices at record high levels.
Stephen Baker, technology industry advisor at NPD, said long-term demand for TVs likely improved as a result of the pandemic, with a much higher consumer value on larger screens, streaming quality, and the availability of familiar and consistent interfaces.
“Expect pricing to become a hurdle,” Baker wrote in a note. “While consumers expect better big screen TVs, the era of high-volume sales above $1,000 has passed.”
Baker said model mix remains key. Brands and retailers need a robust sales mix to capture a fair share of premium TV sales, while maintaining volumes necessary to create operating and cost leverage.