Wal-Mart considers 2M HD DVD player buy

Retailer says consumers will choose dominant format as prices decrease

By Jennifer Netherby -- Video Business, 4/30/2007

APRIL 30 | A week after Chinese manufacturer Fuh Yuan said it had received an order from Wal-Mart for 2 million low-priced HD DVD players, Fuh Yuan put a note on its site saying it’s not a done deal.

“We are sorry to correct the statement that we have 2 million HD DVD players order [sic] from Wal-Mart and manufactured by China Great Wall Group,” Fuh Yuan said in a statement on its Web site. “The actuality is that we had not received yet [sic]. We are asked to provide the schedule to Wal-Mart and cost to determine the quantity even more than 2 million, if the cost is good enough and timing is correct. So the capacity is under consideration. Any qualified manufactured base group will be welcome.”

Reports surfaced on the AVS Forum April 20 that the company had closed a deal with the largest U.S. retailer.

Due to its size and low-price strategy, Wal-Mart could easily help sway the war between HD DVD and Blu-ray Disc if it were to bring in one format in large quantities over the other.

So far, the retailer has brought in Blu-ray and HD DVD players and movies.

Wal-Mart wouldn’t comment directly on whether it would or wouldn’t bring in the low-cost Chinese players, but the chain released a statement to Video Business that seems to leave the door open.

“Today we sell both Blu-ray and HD DVD in our stores nationwide (approx. 750 stores). As with all new technologies, we are committed to providing the best value on products that customers choose as most relevant to them. With new industry developments, we will make shifts in our selections as customer preferences evolve and they vote with their purchase,” the statement said. “We expect that as prices decrease and new elements are added in the coming months that consumers will choose which format will dominate, and that could happen by the end of this year.”

Toshiba has already cut its price on its bottom-line HD DVD player to $399, while Sony has said it will cut the price on its Blu-ray player to $600 this summer.

Even cheaper players are expected in the second half of the year when Chinese manufacturers are forecast to begin producing low-cost HD DVD players for sale in North America.

HD DVD backers believe lower-priced players will speed up sales on their format, helping them to knock out Blu-ray.

« Back | Print