Seeking high-def Santa
October 19, 2007

 Susanne Ault reports  that key consumer electronics retailers are looking to increase/maintain their profit margins in the face of falling HDTV prices by selling TV buyers more accessories, including high-def DVD players. Could be beneficial all around, since software sales will grow with hardware penetration.

Challenges to that goal, however, include forecasted weak consumer spending this holiday season (Wal-Mart just last week slashed prices on more than 15,000 items in hopes of getting the Christmas party started) and the dang format war, which is causing consumers to delay next-gen DVD purchases.

The Consumer Electronics Assn. last week revealed the results of its 14th annual “CE Holiday Purchase Patterns” study, which predicts that consumer electronics will account for 22% of all holiday gifts given. High-def DVD players, however, don’t make the top gift lists.

Among the Top 5 CE gifts adults wish for are MP3 players, notebook/laptops, videogame systems, digital cameras and any type of TV. For teens, MP3 players, digital cameras notebook/laptops, computers and any type of TV made up the list.

That could make it more challenging for retailers who are betting their profit margin they can upsell high-def players with HDTVs.

Posted by Marcy Magiera on October 19, 2007 | Comments (0)