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LAS VEGAS - Even though the economy reeled and consumer confidence plunged, DVD remained a strong category for retailers last year.
"The bad news is that sales were slower than anticipated;' said Bill Cubellis, Sony's component AN solutions marketing director. "Also, lower prices may be good news for consumers but it's difficult for manufacturers to make a profit."
To offset the issues of price compression, manufacturers coming into CES 2002 were adjusting their lineups with new value-added features including DVD Audio, SACD and combination DVD/VCRs. Meanwhile, new features a year ago, like mp3 playback, and CD-R and CD-RW compatibility have become virtual standards.
This years mix will include many more progressive scan models at lower price points and the addition of higher-end units that will play discs using either of the multichannel music formats - DVD-Audio or SACD - and in some cases both.
Reid Sullivan, Panasonic Entertainment Group general manager, said he .expects DVD sales to reach 12 million decks and portables for 2001; and predicts 15 million units in 2002.
With close to 25 million DVD households this year, Craig Eggers, Toshiba product management director, said "We're starting to see two or more DVD player households." Second player purchases often include the latest step-up features, manufacturers add.
The following is a glance at some of the major DVDs suppliers were planning to discuss at CES:
Apex is following up its sub-$100 DVD player with one of the first DVD players to support both multichannel Super Audio CD (SACD) and DVD-Audio. The AD7701 also has progressive scan capability and is compatible with mp3, WMA and Kodak PictureCD files. The company will also set a new low price benchmark for the unit at a $349 suggested retail price.
Steve Brothers, Apex sales and marketing senior VP, said the company was targeting limited quantities by Christmas with a larger rollout early in 2002.
"We look at SACD and DVD-A like a Beta/VHS situation. We do not want customers to choose one format or the other with the possibility that one might go away. We feel the consumer should be able to buy any disc they want, regardless of format;' he said. The company will also offer a $199 progressive scan player with 3:2 pull down and...