The market of digital TV is emerging with great potential. As the digital TV is expected to substitute the color TV, makers of the color TV across the world are preparing for the emerging digital TV market. Price is considered to be a major barrier for consumers to switch from the color TV to the digital TV.
The objective of this study is to provide the price forecast of digital TV over its life cycle. Both the analogy from cases of related industries and analysis of demand and cost dynamics are applied to make the price forecast. First based on secondary data of focus group interviews and consumer interviews, consumer trends of the U.S. color TV market is analyzed. Second, takeoffs of related new products are analyzed investigating the diffusion of the products. Third, based on price trends of major parts and the cost structure of TV sets, cost dynamics over time are forecasted. Then, consumer adoption scenarios of the digital TV are discussed and the price forecast is presented.