Sharp Seen Reaching Practical Size Limit With New 90-Inch Flat-Panel

Sharp launched its first foray into universal pricing along with the unveiling of its long-rumored 90-inch LED-lit LCD TV, which was shown publicly for the first time at a press conference Monday in Manhattan. The UPP applies only to the 90-inch LC-90LE745U for now, Jim Sanduski, vice president strategic product marketing, told us.

The LC-90LE745U has a suggested retail price of $10,999 and a UPP price of $9,999, Sanduski said. It’s currently the only TV in Sharp’s line that has UPP attached, which Sanduski attributed to the “uniqueness” of the product. UPP will enable retailers “to ensure the profitability one would expect” with a TV that’s the only one of its size in the flat-panel market, although that rationale could apply to Sharp’s 70- and 80-inch models as well. Sharp felt the 90-inch model “was a good model to start with,” and Sanduski said it’s possible the company will extend UPP to other products down the line but there were no immediate plans to announce. Noting that it’s Sharp’s first stab at UPP, Sanduski said the company has been watching what’s going on in the marketplace and manufacturers and retailers “need to take steps to restore profitability,” he said.

Citing high retailer demand for the 90-inch TV, Sanduski said it will take until the end of summer to fill the retail pipeline. The product began shipping last week, and first retailers to get it include hhgregg, Abt Electronics, Magnolia Hi-Fi and MHT outlets in Best Buy stores, Nebraska Furniture Mart, P.C. Richard & Son, “and others.” Regarding plans for Costco to carry the 90-inch model, Sanduski said, “Not now,” adding there’s no timeframe to add Costco stores. When asked about HTSA and PRO Group dealers, Sanduski said, “It’s the specialty retail channel that this product will be going to,” he said. “It’s not for warehouse level,” he said, adding, it’s going to take until the end of summer to ramp up fully on the product.

HTSA dealer The Sound Room in Chesterfield, Mo., hasn’t received word when it will get the 90-inch TV, although David Young, president, observed it is specialty AV stores like his that used to be the ones to launch stand-out products. “They're going to hhgregg first,” he said, adding “good luck with that.” A 90-inch TV “has to be sold,” Young said, saying his staff, well-versed in selling Sharp TVs, already knows how to set up and install TVs of this size. Customers aren’t asking about the 90-inch, but The Sound Room is chatting to customers about it, creating interest, he said. A resigned Young said, “Whatever. We'll get it when we get it,” adding, “our video business is not at all important for our profit line.” Regarding the protection of UPP pricing, he said, “I'm from Missouri,” expressing wariness that it will be effective. Companies promise pricing protection he said, and “some do, others don’t. There’s a lot of insanity out there."

Young is expecting interest in the product from his early adopter customer base, but he warned that a 90-inch TV is pushing the practical size limit. “I've told them they'd better make it able to fold,” he said, referring to getting the TV through doors and hallways into a room. His company has had some challenges with Sharp’s 80-inch models where “tight spaces are a challenge” and with a 90-inch model, there will “definitely be issues,” he said.

There is “some headroom” for that size TV, said Mark Shaw, CE division merchandising manager at Nebraska Furniture Mart. Although people have always liked the idea of a big TV, the problem with projection TVs was the depth, he said. “The only thing that could hold back and 80- or 90-inch from some homes is it’s a big black thing hanging on the wall when it’s not turned on,” Shaw said. From a decorating perspective, “it’s a challenge,” he said.

Depth isn’t an issue with the 141-pound LC-90LE745U, which measures 5 inches thick, noted John Herrington, president of Sharp’s U.S. business. Herrington compared that with the company’s technology statement 108-inch LCD TV launched in 2007 at CES, which was 9 inches deep, weighed 500 pounds and carried a $100,000 price tag. The 90-inch model is driven by 500 full-array LEDs, Sanduski said, while promoting the energy efficiency of the model that uses 138 watts and costs $28 per year to operate, he said, based on a viewing average of 6 hours per day. The LEDs are rated for a 27-year lifespan based on the same viewing time, he said. The 90-inch model is 3D, comes with two pairs of active-shutter glasses and has Wi-Fi inside.

The 90-inch TV didn’t have a customary unveiling in Japan, Sanduski noted, as the TV will be available only in the U.S. market initially. Panels for the TV will be produced at Sharp’s two large-scale plants in Kameyama and Sakai City in Japan, with assembly done at the company’s facility in Rosarita, Mexico, according to Bob Scaglione, chief marketing officer. The 90-inch model won’t be available through e-commerce, Sanduski told us, though some of the 70- and 80-inch models are available “under certain conditions.” The 90-inch TV is the only one in the line that has a blanket “no e-commerce policy,” he said. Consumers must purchase the TV in stores, Sanduski said.

Sharp launched the 90-inch TV in its “better” line of series 7 TVs, which Sanduski said was based on a “speed-to-market” decision. If the company had come out with that screen size in its “best” Series 8 Quattron TVs, “it would have taken longer to get to market,” he said. To give an idea of when a Quattron version might follow, Sanduski noted that the company launched its series 7 80-inch model last fall and delivered a Quattron Series 8 version this spring. He didn’t comment on plans for an Elite version, where the line currently includes 60- and 70-inch models.

The rollout of the 90-inch will be supported by special training and merchandising for retailers, Sanduski said, “to make sure the product looks its best.” White glove delivery is a requirement for selling the product, Sanduski said, and that includes delivery, unboxing, setup and connection “to make sure it’s working before they leave consumers’ homes,” he said. Retailers will choose whether to charge for that service or build it into the price of the TV, he said. A “topper” will run across the top of the TVs at retail, calling attention to “the world’s largest LED TV,” he said.