Economic Outlook Contradicts New Product Announcements
Recent market developments have cast a pall over economic forecasts for the remainder of 2007. If these forecasts were limited to the U.S., the reaction would have been restrained. But given our role as the engine driving the global economy, the reaction was swift and stern and continues unabated.
One such development contributing to the morass is the recent release of a slew of new CE products, which seems to contradict with economic projections for the remainder of 2007.
Some of the largest consumer electronics firms, guided by internal and external economic analysts, took an unexpected gamble by announcing new product under the assumption there would be significant demand for them during Q3 and Q4. This contradiction either points to corporate guidance taking precedence over accepted economic forecasts or an unusual gamble on consumer spending in an effort to prop up year-end numbers.