A report was released this week saying that the sales of LCD TVs went down for the first time in sales history. Which sounds very dramatic of course but keep in mind that a new product can never go down, since the only place to go from non-existence is up. So my immediate question on hearing this was “what are people buying instead?”

Turns out, it’s not plasma TVs. LCD sales fell by 3% but plasma sales dropped 8%. According to analysts at DisplaySearch, which conducted the study, nothing is replacing these flat-screen TVs; everyone who wants just already has. We don’t upgrade our TV the way we upgrade computers and cell phones. Sales of flat screens went up and up as we transitioned from our old boxy television sets but now the transition period is ending and flat screen TVs make up 84% of the market.

But it seems unlikely that things will coast for long. Soon, Apple may be in on the TV game and internet streaming, interactivity and 3D could all become factors that may tempt some consumers to upgrade yet again.

In the meantime though, this slowdown could be a good or bad sign for American consumers. Low sales often mean that consumers are being more cautious than they were before, perhaps because they are feeling insecure.

On the other hand maybe we are just learning when to stop. In order to be a smart consumer, we have to know our limits. And by that, I don’t just mean our budget. A fancy new TV may be great for some people but if you personally can’t tell the difference- then it’s a waste of money. As technology progresses at light speeds it’s easy to get drawn into the habit of just trying to “keep up with the Joneses.” At the end of the day though, the savvy consumer is one who knows when it matters and when to turn around and focus on the important things in life.