Toshiba Lowers Sales Forecast for HD DVD Players

Toshiba cuts its HD DVD sales forecast by 44%

As the battle between the Blu-ray and HD DVD disc standard slithers along, both camps are looking for ways to get a "leg up" on the other.

Both sides have looked to consoles to increase marketshare. Microsoft's Xbox 360 can be equipped with a $199 HD DVD add-on and every Sony PlayStation 3 console comes equipped with a Blu-ray drive. The inclusion of the Blu-ray drive on the PS3 instantly gave Sony some serious firepower in the next generation high-definition wars.

Toshiba has countered by offering promotions to boost the sales of its HD DVD players. The company has a current promotion where customers who purchase a Toshiba HD DVD player can receive five free HD DVDs via a mail-in rebate.

This week, Toshiba is also offering a $100 instant discount on all HD DVD players to celebrate "Father's Day." The discount effectively brings the price of the low-end HD-A2 to $299.

In addition, Toshiba announced efforts to include HD DVD drives on all of its notebooks next year. Toshiba shipped 9.2 million notebooks in 2006, so making the drive standard issue would do wonders for boosting HD DVD penetration.

Despite Toshiba efforts to latch onto the console market, offer special promotions and expand its use of HD DVD drive in the mobile sector, the company is revising its forecast for HD DVD player sales. Unfortunately for Toshiba, the forecast is one that is trending downward.

The company announced that it lowered its North American sales forecasts for calendar year 2007 from 1.8 million units to 1 million units -- a decrease of 44 percent. The adjustment for the North American market will also affect global sales forecasts, but no estimate was given by Yoshihide Fujii, Toshiba's head of consumer electronics. "Obviously we are going to have to lower our previous global estimate."

Toshiba cites lower than expected unit sales for the lower forecast.
Reference:Brandon Hill,dailytech