Tech Prices Fall, Says NPD
Pricing pressure continued to let off steam in January as U.S. retail prices for consumer electronics fell one percent from December levels, according to the latest NPD Consumer Electronics Price Watch, a monthly pricing monitor from The NPD Group.
This one percent decline was the lowest drop since last July, when prices saw a comparable one percent decrease. When compared with January 2004 and 2003, prices remain far below those totals with the average selling price down 19 percent and 36 percent, respectively. The total cost of the basket of 27 electronics goods tracked by the NPD CE Price Watch is now $10,825, far below the $16,999 this same basket cost in January 2003.
"January shows a strong sequential trend for some uplift in pricing off of the holiday's promotionally-driven pricing," explains Stephen Baker, director of industry analysis for The NPD Group. "This year, 13 of the 27 items showed a price increase from December, which contrasts favorably with January 2004, when 15 of the 27 items showed price increases from December to January. This trend belies much of the conventional wisdom that states retailers are out to liquidate their remaining holiday stock in January."