Newegg Expects Better Holiday Sales Than 2011
Newegg did stock up on new Windows 8-based product. Initial demand for the products has been tepid, but ultrabooks have sold fairly well since October, McIntosh said. He does expect Windows 8-related sales to pick up during the first quarter and increase in the second. “I think it will really take on big volume, but not that high in the fourth quarter,” he said. “The good news is (Windows 8 product) sales are growing steadily, but not growing rapidly.”
McIntosh, like the rest of the CE industry, is bullish on holiday tablet sales. Newegg.com is not authorized to sell iPads, but it will throw its marketing muscle behind tablets from Samsung, Asus and Acer, as well as a handful of sub-$100 brands. So far there has not been much price movement from the top-tier brands, McIntosh said, although Newegg will back them up with plenty of promotions.
This year, Newegg has stocked its three warehouses in New Jersey, California and Tennessee, with about a quarter of a billion dollars in inventory for Q4 holiday sales, which typically accounts for about 30 percent of the company’s annual revenue. That inventory doesn’t account for what Newegg will source through its distribution partners. During this holiday season (from October through mid-January), the company has hired about 250 additional employees, primarily in its logistics and customer service centers.