Tech Product Prices Rebound, Says NPD
Pricing levels for tech products began to rebound in December with a three percent increase from November's record lows, according to the latest NPD Consumer Electronics Price Watch, a monthly pricing monitor from The NPD Group.
Overall, consumer electronics prices for a market basket of 27 key items rose slightly from November. This, according to NPD, mirrors 2003 results, which saw prices tick up by three percent from November to December. The overall basket value for the month of December was $10,913, which, while up from November, still represented a nearly 20 percent decline from what the same basket of goods would have cost in December 2003.
"Price increases during the month of December are typically driven by two separate holiday buying and selling trends," explains Stephen Baker, director of industry analysis for The NPD Group. "First, Black Friday's outrageously low prices hit the market in November, which depressed November prices and encouraged consumers to buy. Second, December buyers are more receptive to expensive desktop PCs, notebook computers, big-screen TVs and the like, as well as being more inclined to spring for more well-known brands and recognizable features. This combination normally sends pricing levels higher in December."