The MP3 player is poised to be a strong contender in the race to dethrone flat-screen TVs, which were the best-selling items at the end of 2004. Observers agree that the product generating the most excitement this time around can only be the iPod Nano.
In the mobile sector, notable devices include the MP3 player, Sony PlayStation Portable, Samsung phones, and Motorola devices. For stationary devices, Microsoft’s just-released Xbox 360, high-definition televisions (HDTVs), and various LCD and plasma products are expected to achieve high sales.
iPod Aiming for a Double Win
iPod Nano.
The iPod is writing a new chapter in the book of unmatched successes in the music industry. “Only about 3-4 products will stand out at this time. There’s no doubt that the iPod will achieve significant sales and deserves to be a meaningful Christmas gift,” said Steve Baker, an analyst at NPD (U.S.).
From the Nano pencil to the video version that can play the latest clips from Destiny’s Child, the iPod will continue to be the most sought-after product. The lowest price starts at $199 for the 2 GB version (stores 500 songs).
Xmas Christmas Season
Xbox 360.
The bidding wars on eBay are enough to prove the appeal of the first generation of new gaming devices hitting the shelves. One gamer was willing to spend $10,600 to buy Microsoft’s Xbox 360 console. Meanwhile, this product, featuring upgraded performance and graphics, starts at $299 for the core version and $399 for the official version.
Television Choices
Sony’s KDE-50XS955 Plasma WEGA.
Flat-screen TVs are the number one item on the list of most popular products in 2004, and this year, they may repeat that success.
Fourteen percent of the 3,780 consumers surveyed by Macerich (U.S.) plan to buy a plasma TV as a gift for loved ones. However, they are confused by the more than 50 plasma brands, not to mention 60 LCD TV manufacturers in the market. LCD technology is more expensive but offers higher image quality.
As analysts predicted, the prices of many high-end TV models have dropped significantly, with the improved resolution Maxent 42-inch plasma TV starting at $999 after Thanksgiving.
Handheld Game Consoles
Sony PlayStation Portable.
Sony’s PlayStation Portable, launched in March in the U.S., is entering its first official shopping season. Since its release, over 2 million units have been sold in the U.S. The device is not only for gaming but also has capabilities to play music, movies, display digital photos, and browse the web via integrated wireless.
Fashion Phones
Motorola RAZR.
The multifunctional stylish mobile phones from Nokia, Motorola, and Samsung have also joined the electronic gift race.
According to the official Black Friday 2005 website, the retail price of the Motorola RAZR at Wal-Mart is down to $88.73. Previously, this product was sold at an average price of around $199 depending on the distributor.
Laptops
HP Pavilion zv6000 priced at $398.
Retail stores are fiercely competing in the affordable desktop and notebook PC market. At Wal-Mart, a Hewlett-Packard laptop with AMD Sempron 2800+ processor, 256 MB of memory, 40 GB hard drive, CD-RW/DVD drive, and 15-inch screen will be priced at $398. At the same price, there is also a desktop computer with a 15-inch screen, Sempron 3000+, 512 MB of memory, and a 40 GB hard drive.
Best Buy is challenging Wal-Mart with a Toshiba L25-S1192 laptop, Intel Celeron M 370 chip, 256 MB, 40 GB hard drive, and wireless capabilities reduced to $379.99.
CompUSA is also a formidable competitor with its Compaq Presario laptop featuring Sempron 2800+, 256 L2 cache, and 40 GB hard drive priced at only $299, down from an original price of $729.99.
Cameras Still “Buzzing”
Canon PowerShot S80.
Digital cameras are an interesting category even though recent statistics show that revenue growth for cameras has significantly slowed.
The online retailer Sears will reduce the price of Argus’s 5-megapixel CMOS camera from $119.99 to $79.99. Meanwhile, CompUSA is selling the Kodak C360 5-megapixel camera with 3x zoom for $129.99 (original price $249.99).
Digital Video Recorders
Pioneer DVR-810H-S retailing for $1,199
Consumers this year are also paying attention to DVRs (Digital Video Recorders). Currently, nearly 8% of U.S. households use a digital video recorder, and this is expected to rise to 39% by 2010. TiVo is the most famous product in this category but is facing fierce competition. DirecTV’s TiVo replacement DVR is now on the market, while DVR-DVD recorders are set to be released by the end of this year.
Hai Nguyen
