Average Price for Tech Products Leveling-Off: Latest Results
From NPD CE Price Watch Released
PORT WASHINGTON, NEW YORK, August 17, 2004 Tech product prices
experienced a leveling off after five months of price declines
according to the latest NPD Consumer Electronics Price Watch, a
monthly pricing monitor from The NPD Group that provides a top-line
look into the average selling price of technology products being
sold in the U.S.
During the month of June 2004, retail prices for the CE Price
Watch
market basket of goods fell by less than 1 percent from May
and 15.6 percent from June of 2003. Both of these declines were the
lowest
recorded since the start of CE Price Watch in January 2003.
The overall cost of the basket of goods followed by CE Price Watch
stood at $12,399 in June.
Laptop Battery The small selling price decline is a combination of both small
price declines from last month and a number of price increases,
said Stephen Baker, The NPD Groups director of industry analysis.
Of the 27 categories tracked, eleven had increases from May pricing
levels. The equivalent data in May showed that only 7 products
showed month-to-month increases. On a percentage basis only three
product groups delivered more than a 5 percent price decline.
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Thinkpad The percentage leader was 802.11g wireless access points, which
fell 10.3 percent from May. This decline is the result of the
introduction of enhanced or SuperG products by all major networking
OEMs. Blank DVD media fell by 8 percent to under $18 for a ten-pack
of write once media. Prices have been fluctuating in this market,
although the trend is unmistakably down since an equivalent 10-pk
cost $23.41 last year.
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Microsoft The third largest percent decline was seen in the 32-inch Direct
View HD TV, which fell below $900 for the first time. This product
has now fallen by nearly one-third over the past eighteen months
and 13 percent since January 2004. Large absolute dollar declines
were also seen in the 20-inch LCD TV category and the 17-inch LCD
monitor category. Prices for those two products fell $31 and $11,
respectively.
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Laptop Computers Price increases during June were uniformly small and manageable.
DVD portable players as well as prices on DVD recorders moved
higher. Both of these increases were less than 4 percent and
represent the normal price movement that occurs as new technology
begins to be deployed. Both of those products, while up on a
month-to-month basis have fallen by over 9 percent since the start
of 2004. Portable DVD players are down 36 percent since January
2003 while DVD recorders have dropped 45 percent. The largest
percentage gainer for June was the most basic DVD player, which
increased 7.6 percent over May.
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Laptop Computer As in any technology category, the basic DVD player has now
reached the depths of its pricing and is being supplanted by newer,
more technologically advanced devices, Baker added. Pricing at this
point in the lifecycle is likely to fluctuate as the product moves
from being a mainstream product to a promotional product with
limited distribution.
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Desktop Computer About the NPD Consumer Electronics Price Watch
The NPD Consumer Electronics Price Watch is based on 27 of the
best selling product categories in the consumer electronics space,
which includes a cross-section of the products people buy and is
made up of a market basket of the most frequently purchased
electronic products, including televisions, PCs,
cameras and media players.
Notebooks About The NPD Group, Inc.
Lenovo Since 1967 The NPD Group has provided reliable and comprehensive
sales and marketing information for a wide range of industries. NPD
provides critical knowledge on what is selling, where, to whom and
why to help our clients make more successful, fact-based business
decisions. Today more than 1,300 manufacturers and retailers rely
on NPD to help them better understand their customers, product
categories, distribution channels and competition in order to help
guide their business and positively impact sales and revenues.
Information from The NPD Group is available for the following major
vertical sectors: apparel, appliances, automotive, beauty,
cellular, consumer electronics, food and beverage, foodservice,
footwear, home improvement, housewares,
imaging, information technology,
music, software, travel, toys and
video games. For more information visit www.npd.com.
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