U.S. buyers shrug off 3D, Internet TVs

NEW YORK: Fancy new features like 3D screens and Internet connectivity have failed to inspire U.S. television shoppers, dashing a hoped-for recovery in the global consumer electronics industry.

Manufacturers such as Sony Corp, Samsung Electronics Co Ltd and Sharp Corp are learning that features such as razor-thin LED TVs are just not enough for television sales to stage a comeback in the United States.

On Tuesday, Best Buy Co Inc Chief Executive Brian Dunn told analysts that sales of 3D TVs had fallen behind industry expectations.

The largest U.S. electronics chain cut its full-year profit forecast, and its disappointing results put pressure on shares of Best Buy and other electronics companies.

"The stock got killed today," said Frank Ingarra, a co-portfolio manager of Hennessy Funds, which holds 32,000 shares of Best Buy. The retailer's shares dropped nearly 15 per cent on Tuesday to close at $35.52.

Despite a better-than-expected performance by U.S. retailers in November, consumers are holding off on big-ticket purchases like TVs with the latest bells and whistles.

Consumer electronics executives say TV sales will improve once more 3D content becomes available next year and when consumers start recording their own content on 3D-enabled camcorders.

"Just like how high-definition TV started in sports and movies, as 3D evolves, it will go with sports and movies and then become more of an everyday thing," Jay Vandenbree, head of home entertainment at LG Electronics USA, said in an interview.

For now, investors are demanding to know why retailers aggressively pushed a new generation of TVs after many consumers had just upgraded to their first flat-screen sets this year.

Sales of TVs with Google Inc's Google TV software, which lets viewers surf the Web directly from TV sets, were also hurt as consumers realized they could find the same services, like movie service Netflix Inc, elsewhere.