It's iHoliday Season Again
By Eric Schwartz
As I write this, Black Friday is still a week away, and we're all speculating what the big holiday retail news will be. A few of the Web sites that post retail circulars, both leaked and official, show $69 DVD recorders, $14.99 DVD players, $1,200 plasma TVs, $499 DLP projectors, $20 TiVos and free satellite radios (after rebate—I thought only blank disc deals were that good).
With prices declining up to 30 percent in some categories, it may seem like we're eating our own young. This sounds frightening, especially since many of these products are new technologies that should still be in their early adopter (i.e. high margin) phase, and also because many of these deals are being offered online, thus driving down retail foot traffic, which not only produces the initial sale but leads to more accessory and extended service contract sales.