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Will TV Shortage, OLED Bring Back Margins?

ADI’s Randy Blanchard says the TV shortage is ‘more acute than ever.’ He speculates that margins could make a comeback.


ADI's Randy Blanchard, in his booth during EHX, speculates that the TV production shortage could help bring back dealer margins on TVs.
Jason Knott · March 23, 2012

As everyone knows, the poor financial situation among so many TV manufacturers led them to cut back on production starting last fall.

The shortage is now hitting the channel, giving even more importance to buying group membership and exclusive partnerships between key manufacturers and distributors, such as the ADI distribution deal with Sony announced last fall, that guarantee product for dealers.

But could there ultimately be a silver lining to this turmoil? Randy Blanchard, ADI’s business development manager, residential A/V, thinks so.

“The shortage of flat-panel TVs is more acute than ever,” Blanchard said during EHX in Orlando. “At some point, there has to be a better solution for everyone - manufacturers, distributors and dealers - to make money.”

“TVs cannot continue to be a loss leader for dealers to get into the home. Now that the supply has been cut down, economics says that the margins should come back. Although, it will never be the traditional margins we still see in audio or even what we saw before in video,” he adds.

Blanchard also thinks new technologies will help. “From what I saw of OLED from LG and Samsung, I think it will come to market sometime in 2013, which will also hopefully help bump up the prices and margins on LCD and plasma,” he says.

Blanchard notes that the security industry’s response to Sony flat panels from ADI has been “huge,” and that Sony has authorized “a lot of new dealers” through the partnership. “Sony is an easy brand name to use in a sales conversation, and it gives the dealers more credibility,” he says.



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  About the Author

Jason Knott is Chief Content Officer for Emerald Expositions Connected Brands. Jason has covered low-voltage electronics as an editor since 1990, serving as editor and publisher of Security Sales & Integration. He joined CE Pro in 2000 and serves as Editor-in-Chief of that brand. He served as chairman of the Security Industry Association’s Education Committee from 2000-2004 and sat on the board of that association from 1998-2002. He is also a former board member of the Alarm Industry Research and Educational Foundation. He has been a member of the CEDIA Business Working Group since 2010. Jason graduated from the University of Southern California. Have a suggestion or a topic you want to read more about? Email Jason at jason.knott@emeraldexpo.com

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