remember though, that as the tv space becomes more competitive the manufacturers also respond. 1 With innovation eg 3d smart , led etc etc. This creates excitement and creates the new cycle, pulling the product out of the commodity category and back into impulse purchase.
2 consolidation as not all manufacturers can be profitable
I think that the impulse purchase environment favours JBH whereas online is favored by the commoditization .
Here is where the manufacturers are moving in the same direction of JB. They cannot afford to stop innovating otherwise sales fall and margins compress. But if I just want a vanilla 42" lcd go online and order its no excitement purchase and i can wait the 10 days for it to arrive
I also think that the consolidation that occurs, puts more power back into the hands of fewer producers. They want to maintain margins so they will make it harder for the deep discounters, who make margin smaller.
Also look at the new Ipad 3 for example with the retina display that ups the ante with resolution, beyond full HD. Watch the producers run to the new standard "retina ready" "airplay ready" all encouraged by apple with its new upgrade to apple tv. Innovation is JB's friend
JBH Price at posting:
$10.55 Sentiment: Buy Disclosure: Held
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