Year-End Tech Product Prices Rebound, According To Latest NPD
Consumer Electronics Price Watch Results
Year-over-Year Prices for the Month of December Decline 20
Percent
PORT WASHINGTON, NEW YORK, March 2, 2005 - Pricing levels for tech
products began to rebound in December with a three percent increase
from Novembers
record lows, according to the latest NPD Consumer
Electronics Price Watch, a monthly pricing monitor from The NPD
Group.
Overall, consumer electronics prices for a market basket of 27 key
items rose slightly from Novembers record lows. This mirrors 2003
results, which saw prices tick up by three percent from November to
December. The overall basket value for the month of December was
$10,913, which, while up from November, still represented a nearly
20 percent decline from what the same basket of goods would have
cost in December 2003.
Laptop Battery Price increases during the month of December are typically
driven by two separate holiday buying and selling trends, said
Stephen Baker, director of industry analysis for The NPD Group.
First, Black Fridays outrageously low prices hit the market in
November, which depressed November prices and encouraged consumers
to buy. Second, December buyers are more receptive to expensive
desktop PCs, notebook computers, big-screen TVs and the like, as
well as being more inclined to spring for more well-known brands
and recognizable features. This combination normally sends pricing
levels higher in December.
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Thinkpad December saw 19 of the 27 tracked items register a price
increase over November, although when compared to December 2003, 23
of the items showed price declines. The product type seeing the
largest decrease in prices in December was an 802.11g wireless
access point, which fell over seven percent from Novembers price,
falling below $80 for the first time. No other product fell more
than four percent.
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Microsoft When looking at specific products that rose in price in
December, DVD players led the way. Whether they were models that
offered recording, portability, or were standard home deck DVD
players, all rose over 15 percent from November 2004 pricing. Since
DVD played such a key role in Black Friday promotions in 2004, it
was not surprising to see DVD players lead the way towards higher
prices in December. In addition to DVD players, three mega pixel
digital cameras and digital memory cards showed the biggest jumps
over November. Again, both categories were heavily promoted in
November.
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Laptop Computers 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.
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Laptop Computer About The NPD Group, Inc.
Since 1967 The NPD Group has provided reliable and comprehensive
sales and marketing information for a wide range of industries.
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. 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 http://www.npd.com/
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