Tuesday, December 13, 2005

Multimedia Gadgets Lead Digital Sales

PCWorld.com writes about the hot digital products this holiday season. According to the Consumer Electronics Association (CEA), "shoppers are expected to spend $17.1 billion on consumer electronics this holiday season." Topping the list are MP3 players.

Sam Bhavnani at Current Analysis said, "The [iPod] Nano is going to lead the charge. It's one of the sleekest models out there." He noted the $199 price point of the nano 2GB version "fits in the price threshold that consumers may set for MP3 players." Bhavnani cited the Creative Zen MP3 players as an iPod alternative, and thought Sony "is missing the U.S. digital audio boat as its new A-series Walkmans are available only in Japan."

Other than the iPod Video, Bhavnani said "Stuff that's $400 to $500 that shows video still hasn't proven itself."

Another big seller this season are digital cameras. Ed Lee at InfoTrends Research Group pointed out the entry level for basic users are "4-megapixel cameras in the $100 to $200 price range, a $100 fall from last year's holiday season price range." He also thought cameras with wireless capabilities would be a niche market.