CEA: Predictions Perky for Holidays

The current tendency for consumers to stay home rather than travel may bode well for electronics manufacturers and retailers this coming holiday season, according to a survey conducted by the Consumer Electronics Association.

The manufacturers' trade group predicts that 77% of consumers will buy at least one consumer electronics product as a gift this holiday season. The prediction is included in 8th Annual Holiday Purchase Patterns, a CEA survey released in mid-October.

Among the most-cited probable gifts are DVD players, headset CD players, digital cameras, and wireless telephones. Communications devices are more desirable than ever, the survey said, with cellular phones at the top of the list. Cell phone sales surged in the aftermath of the terrorist attacks September 11. DVD players will also be extremely popular gifts, as prices for the machines continue to decline and an amazing number of new titles come on the market.

A reluctance to travel and a recognition of the importance of a satisfying life at home are both factors that will help boost electronics sales. "Consumers' concerns over the economy and safety are leading them to recognize that consumer electronics products allow families to stay connected and share time in the home," said CEA chief Gary Shapiro. "New financial realities require that purchases, particularly gifts, offer the greatest value, and CE products provide that value. Prices have never been lower while quality has never been higher."

Electronics are seen as universally acceptable gifts, says the CEA. Although most consumers feel that the US economy is in worse shape now than it was a year ago, 70% of them say they will spend as much on gifts this year as they did last. That prediction should give the industry hope for enduring the present recession.

The survey elicited one bit of information that even the most aggressive businessman won't argue with: The most wished-for gift this holiday season isn't manufactured. This year, it's peace and happiness.

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