Toshiba Moves 90,000 HD DVD Players During Weekend Sales Rush
November 7, 2007 10:33 AM
comment(s) - last by
HD DVD players get a sales lift thanks to sub-$100 pricing
The battle in the next generation high-definition DVD format war is far from over. HD DVD and Blu-ray have been
fighting it out in the market for roughly a year
neither side shows any signs of giving up the fight
In late October,
reported that Blu-ray disc sales
held a commanding lead over HD DVD
for the first nine months of 2007. Blu-ray outsold HD DVD by a 2-to-1 ratio racking up sales of 2.6 million units versus 1.4 million units for HD DVD.
Since the inception of both standards, a total of 3.01 million Blu-ray discs and 1.97 million HD DVD discs have been sold.
Toshiba, the main backer for HD DVD, decided to turn the tables a bit in order to swing the sales momentum back in its direction. One by one, retailers started dropping the price of the second generation Toshiba HD-A2 HD DVD player. Wal-Mart dropped the price of the player from $299.99 to
in late October. Circuit City and Amazon both followed suit
pricing the player at $197.99
On November 1,
brought you news of Wal-Mart's secret in-store sale which listed the price of the HD-A2 at an
unheard of $98.87
. Soon after, Best Buy countered by pricing the player at $99.99. Sales of the player were so furious at BestBuy.com that the stock was depleted leaving backorders to be fulfilled with the
third-generation HD-A3 at no additional charge
It appears that Toshiba efforts to drive down the price of entry for HD DVD paid off.
90,000 Toshiba HD DVD players were sold over the weekend
thanks to the price drops.
For comparison, Sony has sold 100,000 of its
$499 BDP-S300 set top player
since its introduction during the summer.
Despite the weekend surge in HD DVD player sales, Sony can still claim the largest install base with its Blu-ray hardware. Since its introduction in November 2006, Sony had shipped over
5.51 million PlayStation 3 consoles
-- each of which features a Blu-ray drive.
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RE: But wait! There were no lines at Wal-Mart!
11/7/2007 9:17:22 PM
The only problem with your post is that it is Toshiba's decision to put the players at $99. They sign a deal with Walmart which includes where in the store the item will be located, the promotional price, and the print and TV advertisements which is mostly paid by Toshiba. Walmart themselves have little to do with the price cut and terms of the deal. Same goes with any product you see being promoted in a walmart ad or any store ad for that matter. Sale prices, circular location, and shelf locations are all negiotiated.
RE: But wait! There were no lines at Wal-Mart!
11/8/2007 1:40:53 AM
Too bad you got only part of your post correct....the rest is about 180 degrees off.
Wal-Mart, the largest single retailer in the world, usually dictates the terms of any deal with any supplier. This would include Toshiba.
Wal-Mart essentially tells a supplier what kind of item they want and at what price point. It's then up to the supplier to either produce the item at that price or get passed over for another supplier willing to sell to Wal-Mart under those terms.
And every year the supplier contracts to supply WM with XX goods, WM usually expects a price reduction.....
True, shelf space, prices, etc., are all negotiated, but it's done with Wal-Mart in the position of power, not the supplier, and it's done with Wal-Mart specifying the terms of everything, not the supplier dictating the terms.
You ought to read the two articles below.....really will give an insight as to how WM sources and negotiates with its suppliers. Now, I know both articles are over 500 words, and both are probably much longer than anything you're used to reading before losing your attention....sucks to have such short attention spans, isn't it?......but try to read and comprehend what is written in them; then you may truly understand how WM sources its goods.
"If you look at the last five years, if you look at what major innovations have occurred in computing technology, every single one of them came from AMD. Not a single innovation came from Intel." -- AMD CEO Hector Ruiz in 2007
Warner Stays the Course on HD DVD/Blu-ray Disc Support
November 6, 2007, 2:00 PM
Best Buy Replaces Backordered $99 Toshiba HD-A2s with HD-A3s
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Google Gets Serious With Verizon and Sprint, Shares Hit 700
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Update: Why Wait for Wal-Mart; Circuit City Lists Toshiba HD DVD Player for $197.99
October 29, 2007, 8:20 AM
Wal-Mart to Carry $198 Toshiba HD DVD Player
October 26, 2007, 8:46 PM
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