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Year-End Tech Product Prices Rebound, According to Latest NPD Consumer Electronics Price Watch Results; Year-over-Year Prices for the Month of December Decline 20 Percent
[March 02, 2005]

Year-End Tech Product Prices Rebound, According to Latest NPD Consumer Electronics Price Watch Results; Year-over-Year Prices for the Month of December Decline 20 Percent

PORT WASHINGTON, N.Y. --(Business Wire)-- March 2, 2005 -- Pricing levels for tech products began to rebound in December with a three percent increase from November's record lows, according to the latest NPD Consumer Electronics Price Watch, a monthly pricing monitor from The NPD Group.

Overall, consumer electronics prices for a market basket of 27 key items rose slightly from November's record low. This mirrors 2003 results, which saw prices tick up by three percent from November to December. The overall basket value for the month of December was $10,913, which, while up from November, still represented a nearly 20 percent decline from what the same basket of goods would have cost in December 2003.

"Price increases during the month of December are typically driven by two separate holiday buying and selling trends," said Stephen Baker, director of industry analysis for The NPD Group. "First, Black Friday's outrageously low prices hit the market in November, which depressed November prices and encouraged consumers to buy. Second, December buyers are more receptive to expensive desktop PCs, notebook computers, big-screen TVs and the like, as well as being more inclined to spring for more well-known brands and recognizable features. This combination normally sends pricing levels higher in December."

December saw 19 of the 27 tracked items register a price increase over November, although when compared to December 2003, 23 of the items showed price declines. The product type seeing the largest decrease in prices in December was an 802.11g wireless access point, which fell over seven percent from November's price, falling below $80 for the first time. No other product fell more than four percent.

When looking at specific products that rose in price in December, DVD players led the way. Whether they were models that offered recording, portability, or were standard home deck DVD players, all rose over 15 percent from November 2004 pricing. Since DVD played such a key role in Black Friday promotions in 2004, it was not surprising to see DVD players lead the way towards higher prices in December. In addition to DVD players, three mega pixel digital cameras and digital memory cards showed the biggest jumps over November. Again, both categories were heavily promoted in November.

About the NPD Consumer Electronics Price Watch

The NPD Consumer Electronics Price Watch is based on 27 of the best selling product categories in the consumer electronics space, which includes a cross-section of the products people buy and is made up of a "market basket" of the most frequently purchased electronic products, including televisions, PCs, cameras and media players.

About The NPD Group, Inc.

Since 1967 The NPD Group has provided reliable and comprehensive sales and marketing information for a wide range of industries. NPD provides critical knowledge on what is selling, where, to whom and why to help our clients make more successful, fact-based business decisions. Today more than 1,300 manufacturers and retailers rely on NPD to help them better understand their customers, product categories, distribution channels and competition in order to help guide their business and positively impact sales and revenues. Information from The NPD Group is available for the following major vertical sectors: apparel, appliances, automotive, beauty, cellular, consumer electronics, food and beverage, foodservice, footwear, home improvement, housewares, imaging, information technology, music, software, travel, toys and video games. For more information visit

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