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Housing Slump Makes Consumers Hesitant About Electronics Purchases

by Thomas Houston on March 12, 2008 at 10:41 AM



Consumer electronics sales dropped in the fourth quarter of 2007, and analysts link the decrease in spending to the continued housing slump in the U.S.

Stephen Baker, a market analyst with NPD (a market research company), says that people began to view consumer electronics "like plumbing and air conditioning -- something you had to have." Research by NPD and the National Association of Realtors suggests a change in purchasing habits: Consumers are buying fewer gadgets because of concerns about the housing market. The San Jose Mercury News reports declining sales of DVD players, computers, stereos and digital cameras. Interestingly, while low to-mid-range product sales have been hit hard, high-end products like home-theatre systems are still selling extremely well.

Analysts foresee cutbacks this year in consumer electronics spending, and we hope to to see deals and lower prices as businesses try to get rid of inventory.

From USA Today

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Tags: spending

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