Sony Corp. and Samsung Electronics, who have each reported near-disastrous results as a result of cutthroat competition among TV retailers that has driven down the prices of their television sets, has urged the retailers to call a truce, according to the Wall Street Journal . In fact, they are acting to impose such a truce by threatening to cut off wholesale sales to discounters who advertise prices below MSRP. The newspaper observed that prices of TVs are falling, even though the size of the sets consumers are buying is expanding. The Journal points out that the price war has also wounded retailers, with Best Buy, the world's largest electronics chain, reporting a 25-percent drop in earnings this week. But the Journal pointed out that many analysts predict that the Sony/Samsung attempt to prop up prices will fail. It quoted David Strasser, an analyst with Janney Montgomery Scott as saying, "The real test will be the holiday when everyone is fighting for market share."

24/05/2012