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Are Slashed Gadget Prices Set to Rise?

Are Gadget Prices Set to Rise?

There are some signs on Wall Street that this awful economy might just be starting to recover a bit, but even if it continues to flounder, some analysts are suggesting that you should seriously think about hurrying up and making that electronics-related investment you've been pondering. It's believed that the steep decline of prices on things like HDTVs and MP3 players is not only going to stop, but that those prices could begin to rise as consumer demand bucks economic trends.

While prices are still going down, that trend is bottoming out as prices of the components used in electronics, like flash memory and LCD panels, are beginning to rise. Higher component prices means higher production costs and, ultimately, higher retail costs. Also, with Circuit City finally closing its doors, tech mega-retailer Best Buy doesn't have to work as hard to get your money.

Finally, with more and more people spending more on home entertainment systems as opposed to vacations, eating out, and other outside the home diversions, it's believed that demand could rise. It doesn't take a degree in economics to know what that means.

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Computers

All Circuit City Stores Closing Permanently on March 8th


To an icon in the consumer electronics retail space, we wave goodbye. And for the hordes of employees already / soon to be looking for new uniforms elsewhere, we empathize. Circuit City has just announced that on March 8th, all of its stores will lock up for the last time. Granted, some locations have already shut their doors in permanent fashion due to stock depletion, but regardless of leftover wares, March 8th is the end of the line for the laggards. We'd say you might want to stop by your local outlet to catch any last-last-minute sales, but even at a penny, you're not going to want that open-box 4MB SD card.

[Via HotHardware, image courtesy of wbeebe]

Audio/Video, TV

Circuit City Says, "So Long, Suckers!" to Couple That Bought Broken TV


A Boston couple, Gina and Emilio Reis, recently arrived home from a Circuit City liquidation sale only to discover that their new purchase, which bore a hefty price tag, was worthless. Unfortunately for the couple, they also learned that they're now stuck with their brand new, and completely shattered, $1,100 television.


The store displayed numerous signs, inlcuding "All Sales Final," "Do Not Open the Merchandise," and the confusing "Check Your Purchases." Gina and Emilio's only mistake was waiting until they got home to open their gigantic new TV. As a result, the liquidation company selling all of Circuit City's inventory, Great American Group, has refused to accept return, as has Samsung, saying the TV was damaged, not defective. The couple has also appealed to their credit card company, with no success.

Federal bankruptcy court, which covers liquidation, trumps state law, leaving the couple with no recourse. So, if you're going to take advantage of Circuit City's liquidation, check your purchase before you get out the door. If they'll let you, that is. Especially if you plan on dropping a large sum of money. [From: Boston Channel Via: CrunchGear.com]

[Update: Having received numerous calls from the Boston Channel news team, the Reis' credit card company, Citizen's Bank (not Circuit City, we might point out), has relented and agreed to reimburse the couple for the price of the TV.]


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Circuit City Stores Begin to Close, Bargains Await


If you were waiting to get some fliers in the mail announcing the beginning of clearances at your local Circuit City, we're sorry to report you've probably already missed the best deals. The liquidation was just made official last week, but, when Christen over at Gadget Review happened by the trendy Santa Monica branch of the doomed franchise yesterday, he found lines of people already waiting for their chance get in on the "everything must go" action. It looks like the crowds were somewhat contrived, as sales associates were making people wait outside before going in, but just the same you might want to bundle up before heading out for bargain hunting today.

Computers

Circuit City Files for Bankruptcy



Even after shutting down 155 retail stores and announcing plans to cut around 17-percent of its 43,000 employees, Circuit City couldn't avoid the dreaded bankruptcy court. Today, the Virginia-based company (along with 17 affiliates) petitioned for Chapter 11 protection in Richmond as it attempts to survive under the crushing pressure from Best Buy / Wal-mart. Beyond that, details about the outfit's future are unclear, though Best Buy has reportedly stated that it "might take over stores that distressed rivals close." Please, no.

[Via Bloomberg, image courtesy of AFSmith; thanks Daniel]

Computers

Circuit City Considering Shutting 150 Stores to Avoid Bankruptcy

It's made it through some tough times in the past (the other DIVX, anyone?), but it looks like Circuit City is now really up against the wall, and it's apparently considering some rather drastic measures to avoid becoming the largest retailer to enter bankruptcy protection in recent years.

According to The Wall Street Journal, "people familiar with the company" say that Circuit City is contemplating closing at least 150 stores and making the associated high number of job cuts in order to get itself in a better position to shore up some much needed financing, which it has been unable to secure so far.

To put things in a bit of perspective, before it packed up and went home, Blockbuster offered to buy Circuit City in February of this year for $6 to $8 a share. The company's share value as of this writing? 40 cents.

[Via MarketWatch]

Audio/Video

Blockbuster Offers to Buy Circuit City


Huh? Blockbuster just made public its February 17th offer to purchase Circuit City for $6 to $8 per share. As of this morning, Circuit City has not provided the requested due diligence necessary to move the deal forward. As such, Blockbuster is pulling a Microsoft and making the proposal public in hopes of inciting shareholders. It's even gone so far as to publish an open letter from Blockbuster CEO Jim Keyes to Phil Schoonover, CEO of Circuit City.

Really, is this how all corporate affairs will be conducted in the future? What really boggles the mind, though, is Blockbuster's quest for even more brick-and-mortar locations, even as digital downloads begin to take off. Click here for the full contents of the letter.

From I4U

Audio/Video, Car Tech

Circuit City Botches GPS Install, $12k in Damages, Won't Pay Up


For most GPS systems, installation is as simple as sticking a suction cup on the windshield or an adhesive disc on the dash, plugging in an adapter to the cigarette lighter, and hitting the power button. But, if you want something a little more flush and integrated, you have to go with a device installed in your dash. Unless you're the adventuresome type and know what you're doing, dashboard installation is usually a task best left to the professionals. We say "usually" because we've come across a case where paying someone else to do the install was plainly the wrong call, resulting in $12,119 in damages to a 2007 Honda Civic Si.

The woefully bad install job was done at a local Circuit City store, where "qualified" technicians were attempting to install an AVIC-Z2. The installer proceeded to cut the wiring harness from the stock stereo, twist and solder together a new one, drill holes in the heating system, scratch up the front windshield, and crack all the plastic panels surrounding the thing. Sounds to us like the guy who tried to install his home satellite system with a .22 pistol could have done a better job. The install is so bad that the local Honda dealership won't release the car, saying all the shorted wires are a fire hazard.

The most irritating part of the story is that Circuit City isn't ponying up for the damages. To date, the electronics retailer has only paid $3,190, about a quarter of the total damages, and is forcing the victim in question to deal directly with his insurance company rather than just cutting him a check. That is some seriously bad customer service, which we hope will be rectified soon in light of the atrocious publicity this installation-fiasco is generating for the chain.

From Engadget

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Computers, Video Games

Circuit City Shopper Cuffed for Refusing to Show Receipt

Circuit City Shopper Cuffed for Refusing to Show Receipt

If you shop with any frequency at giant chain stores such as Circuit City, Best Buy, Home Depot or even Bed, Bath & Beyond, you've probably grown accustomed to showing a security person your receipt and allowing him to inspect the contents of your bag as you leave the store.

For most of us, this inspection is routine and nothing more than a nuisance. But, have you ever stopped to wonder if this is even legal, or that this search of your bags is essentially an accusation of theft? Well, this past weekend, an Ohio man decided to refuse the search of his bag at an area Circuit City and soon found himself behind bars.

Though he tells the story in much more detail on his own blog, here's a synopsis of what happened to Michael Righi of Brooklyn, Ohio. This past Saturday afternoon, he dropped into Circuit City and bought a surge protector and a copy of Disney's 'Cars' video game for the Ninetendo Wii. When Righi was told by the door person that his bag needed to be inspected and compared to his receipt, Righi refused with a polite "No thank you" and kept walking outside, where his father was waiting behind the driver's seat of his car. The security person and manager ran out of the store and blocked the car's exit from the parking lot. When neither could tell Righi which U.S. law gave them the right to search his bag, Righi asked to be let go or he would call the police himself. They refused and Righi called the police. When the officer showed up, he inspected the bag and saw nothing had been stolen. He also asked Righi for his driver's license. Since Righi was not driving his father's car, he refused to give up his driver's license, but was happy to give his name and address at the officer's request. Not amused, the officer arrested Righi and booked him for 'Obstructing Official Business.'

Righi is now fighting the charges. He plans to involve the ACLU and is even taking donations on his site to help fund his defense. You need to read Righi's full account of the events before you come to any conclusions, but we think it's fair to say that he definitely stirred the pot. Sure, this bag search is definitely an invasion of privacy, and now that we think about it, it really is kind of like accusing us loyal customers of theft. The police officer may or may not have had the right to request Righi's license, but once you refuse an order from a police officer you kind of have to expect you'll end up in the clink – right or wrong. It'll be interesting to see what comes of this case.

From Slashdot

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Audio/Video, Cameras, Computers, Video Games

Thieves Begin Tracking Gadget Shoppers

Thieves Begin Tracking Gadget Shoppers

According to Consumerist, shoppers in Canada's Mississauga, ON, region are on alert after several consumers were robbed shortly after making big-ticket purchases at electronics stores. Police say criminals are staked out at these stores where they lay in wait for a person to buy an expensive item. The thieves will then tail the shopper to his or her next destination, wait until the shopper leaves the car, then break in and rob the items the victim had just bought.

These Canadian hooligans sure are creative -- though definitely a non-confrontational bunch. Here in the good ol' United States, a similar post-purchase rash of thefts occurred when the rare and expensive PlayStation 3 was launched last year. Only, that time there were a lot of blades, blood and hospital visits involved. That's America, baby.

From Consumerist

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Audio/Video, Advice, TV

Wait Until After the Holidays to Buy a New TV, Analysts Say


If you've been thinking about getting a fancy new HDTV, you might want to wait unitl after the holidays to make your purchase -- at least that's the advice several analysts have given to the New York Times. Over the past couple of years, flat-panel prices have plummeted (and subsequently) so have profits.

As a result, retailers are focusing less on the affordable brands (Vizio, Norcent, Olevia) and more on pricier name-brand models (Pioneer, Sony, Sharp). Best Buy, Circuit City and even Costco are not only pushing higher-end models with the latest features like 1080p and HDMI 1.3, but also high-profit additions like extended warranties and professional installation

The relentless push for higher profits will likely let up after the holidays. Many retailers also have large post holiday sales events. So if you're in the market for an HDTV, wait until Dec. 26th. In the meantime, you can always check sites such as dealnews.com to find the latest promotions that may in fact exist before or after the holidays.

From The New York Times

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