After a holiday season of slumping consumer electronics sales, retailers have a New
Year’s resolution of their own: Clear the shelves of gadgets before they’re obsolete.
Yet, even though retailers are busy slashing prices, it doesn’t mean consumers should pounce on prized gadgets right away. In the upcoming weeks, some of the electronics that are currently on the market will be a whole lot cheaper, while others will start to seem as if they’re a lot less cutting edge.
Companies make the bulk of new gadget announcements each year at two trade shows: Apple’s (AAPL: 86.96*, +1.61, +1.88%) Macworld Conference & Expo on Jan. 5-9 and the International Consumer Electronics Show (a.k.a. CES) on Jan. 8-11. The flurry of new product announcements that occur at these events, steers many consumers’ attentions toward the “next big thing,” making it that much harder for retailers to unload older merchandise, says James Fisher, a professor of marketing at St. Louis University. As a result, retailers are forced to slash prices on remaining products even further in the weeks that follow.
Another reason consumers might want to consider waiting to make their next big tech buy: Many of the new models — especially in rapidly-growing categories like netbooks and Blu-ray players — slated to be announced at CES are expected to offer substantial technological improvements over their predecessors. Waiting a week to see what’s on tap could help you decide if you’re getting more bang for your buck by holding out for the latest technology.
So even though electronics stores are offering a bumper crop of year-end sales, it actually could pay to wait on buying certain gadgets. Here are five buys that analysts say will be even better in the weeks and months ahead. (Check back on Monday, Jan. 5 for five electronics buys to pounce on now.)
Cellphones
Once handset manufacturers announce a new phone, consumers don’t have to wait too much longer to find it in stores. The quick turnaround is aimed at keeping competitors from copying designs or features, but it’s also a blessing for phone buyers who want the latest in mobile technology and don’t want to wait, says Rob Enderle, president of technology advisory firm Enderle Group in San Jose, Calif. Expect new mobile phone unveilings made at CES to be available within a month or so (you can handle chatting on your old browser-less clamshell for a few more weeks, right?). Among the anticipated debuts: a lineup of smartphones from Palm (PALM: 3.15*, +0.08, +2.60%) using its new Nova operating system and several manufacturers’ handsets for Google’s (GOOG: 307.45*, -0.20, -0.06%) Android operating system.
Netbooks
These lightweight, low-cost laptops became all the rage in 2008, and now a slew of companies are rushing to grab a chunk of this burgeoning market. Manufacturers such as Sony (SNE: 21.64*, -0.23, -1.05%) and Asus are expected to edge in at CES with devices offering even more functionality than current models on the market and price points below $400, says Michael Gartenberg, vice president of market researcher Jupiter Media. For those yearning for a netbook, it pays to wait for the next generation.
TVs
“Once the new models are announced, the old models get deeply discounted,” says Vipin Jain, CEO of Retrevo, an electronics price-tracking site. Sales get better still as the Super Bowl approaches. If you’re really not in a rush for a new set, wait until mid-2009 for a thinner, cheaper, and sharper set with more bells and whistles. Among the prospective debuts at CES, Samsung is expected to offer a television with built-in connectivity for your computer and other electronics, eliminating the need for a device like Apple TV ($229). “You can just stream and interact,” says Jain.
PCs
“CES is going to be the coming-out party for Windows 7,” says Enderle. If critics offer favorable reviews of Microsoft’s (MSFT: 19.55*, +0.11, +0.56%) new operating system, then consumers can expect lower PC prices leading up to its launch in mid-2009 as manufacturers try to move the last of the unpopular Vista-loaded machines.
Blu-ray
This time last year, Blu-ray emerged as the victor over HD DVD in the high-definition DVD format wars. Companies that had been reluctant to enter the fray spent 2008 developing better, cheaper Blu-ray players, says Jain. By the time models announced at CES hit stores in the second half of 2009, he expects prices to have dropped from the current average of about $300 to under $200. Also expect better features. LG announced its 2009 players can stream content from YouTube, as well as other digital video sources.