Hard times ahead for fancy electronics like big TVs
— -- If you're thinking about buying that expensive big-screen TV — well, that's probably about as far as you're going to get.
Tech analysts say the lousy economy may put the brakes on big-ticket electronics purchases over the next few months, with consumers bypassing luxury items such as expensive TVs and gaming systems, and opting for smaller, lower-priced gadgets.
"TVs are going to be the hardest hit," says Richard Doherty, an independent analyst at the Envisioneering Group. "If it can't fit under your arm, you'll hold off."
Consumers are spending more time window shopping than making purchases now, waiting for holiday discounting, Doherty says. "Things are slower right now than any September in this century," he adds.
Tim Herbert, senior director of market research for the Consumer Electronics Association, says shipments of TVs to retailers were up 37% in September from a year ago, but the numbers don't reflect sales. "Obviously, there's concern and uncertainty, but we hear that TV sales are holding up well."
Marty Singer, director of Web operations for New York retailer J&R Music World, says "sales aren't what they once were" but that TVs priced under $1,000 are still selling.
"Consumers are still really hungry for the new technology," he says.
Digital cameras are seeing little price resistance, he says, because this year's point-and-shoot models have higher resolution at lower prices than before.
Roger Kay, an analyst at Endpoint Technologies, says big-ticket desktop PCs that target gamers and high-end notebook computers will be passed over, in favor of lower-priced computers.
"Apple is vulnerable, due to its higher price points, but they're in great shape with iPods, since you can get an iPod Shuffle for $49," he says.
James McQuivey, who follows TVs and gadgets for Forrester Research, thinks TV fans will skip buying high-definition Blu-ray DVD players and set-top boxes that bring video-on-demand movies into the home, in favor of free online video viewing.
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