A Holiday to Upsell
The story is the same as we go down the list of other gifts. Plasma and LCD are replacing CRT as the display of choice, with a significant difference in average price per set; notebook PCs are becoming the preferred choice over a desktop model—also with a higher average price; cell phones now have more features and greater cost and new game consoles are expected to sport more media functions and online features for greater unit pricing. Sure, in each case the price for any item, like a 42-inch plasma, is dropping, but it's those perceived price declines that are convincing the masses to trade in that older device.
Despite this, the results of the survey suggest overall unit shipments of CE products to be flat for the end of 2005. However, the shift in the product mix will net out a higher average price per item bought, thereby lifting the industry as a whole. The final verdict is an expected nine percent increase in holiday shipment revenues this coming season. Now, if we all can only figure out a way to turn this into a better margin…. Here's to many successes in that regard and a happy, healthy and safe holiday season.