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  • The Paradox of Consumer Choice
    A few years ago I read a book called The Paradox of Choice: Why Less is More by Barry Schwartz. His anecdotes were insightful and pointed to truths about the amount of choice the free market has laid on us as consumers. Of course free markets and consumer choice should be good things, but there are certainly experiences I have had where the overwhelming sense of having too many options made it difficult to actually make a decision. I related to much of what the book was saying, particularly with the experience of picking out a DVD to watch from my massive collection. I recall staring at a wall of DVDs and having the most difficult time deciding what to watch. The decision-making process when faced with so many good choices was simply immobilizing.  
  • The Future of PC and Mobile Processors

    I've spent a lot of time with a number of hardware manufacturers recently, trying to get a glimpse into the next generation of processors and the ways in which they'll impact future gadgets and PCs. In all my meetings, one term has arisen time and again: SOC, or system-on-a-chip.

    Traditionally, chips have been created independently and then coupled together to provide multiple computing features. For example, a manufacturer would create a core processor like an Intel Centrino with a built-in Wi-Fi radio, and then attach that to a systems board, perhaps linking it together with a separate graphics co-processor, in order to deliver enhanced PC graphics. Another might take an ARM core processor and then add on additional features like extended graphics to enhance device functionality.

  • Apple's iPad: Live up the Hype? It Will....
    It was interesting to hear all the chatter after last week's iPad launch. Most reactions I heard from other analysts and media were lukewarm at best...which was what I expected. If you think about it, how can anything live up to the kind of hype leading up to this launch? But there was a lot missed in the media about the event and the product that I hope to share in order to maintain our perspective on not only the iPad but on Apple and their products.  
  • Innovation Abounds - CES 2010 Post Show Analysis

    This year's CES was very interesting. I had felt for the past few years that CES was sorely lacking in the innovation department. But this year it looks like things have changed in the technology industry. Technology companies have realized that to reach the consumer the pace of innovation needs to accelerate, and this year's CES was a start in that direction.  Several things stuck out that I'd like to highlight:  

A Black Friday for the Record Books

Written by Tim Bajarin Tuesday, 24 November 2009 20:23 Last Updated on Tuesday, 24 November 2009 20:25

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In the run up to the holidays, the Consumer Electronics Association (the organization that puts on CES), does a survey to find out the year's hot gifts. As you can probably imagine, the economic climate has weighed heavily on the electronics industry. Consumer spending on PCs and consumer electronic devices is down significantly, year-over-year.

With that in mind, this year's survey has taken on a special weight for the companies that make up the CEA. The survey gives these companies important insight into consumer buying trends and helps them be more targeted in their offerings. In past years, when the economy was booming, companies could afford to be far less picky about the products they chose to release. Given the current state of the economy, however, understanding consumers' desires is incredibly important to managing inventory and preparing for holiday foot traffic.

Also interesting: 69 percent of those surveyed said they plan to spend more time seeking out deals, and 45 percent say they will do more shopping atdiscount retailers this year. Forty-one percent will be buying a less expensive version of a product, while 15 percent expect to buy more online than in retail establishments. Also, when asked what the most important criteria is when buying consumer electronic gifts, 91 percent said product pricing was at the top of the list. Eight-five percent of those surveyed also cited ease of purchase as an important factor. Price has always been a factor when it comes to consumer spending on electronics, but the economic downturn has taken a real toll on mainstream consumers. Deals are the real driver for this year's holiday sales.According to the survey, family holiday spending is going to take a big hit. In 2007, consumers spent $1,671, 56 percent of which was spent on gifts. By contrast, in 2009, consumers are expected to only spend $1,365 on gifts, food, home purchases, greeting cards, decorations, and holiday-related items. Surprisingly, the amount allocated for consumer electronics purchases is actually higher. In 2007, that amount was $197. in 2009, it's expected to be $222. This seems to reflect the significance of such devices in our everyday lives, as they play an increasingly important role in way we work, learn, communicate, and play.

The survey also asked consumers what electronics would be on their gift lists this year. Adults put notebooks at the top of the list, followed by MP3 players, flat panel TVs, gaming consoles, digital cameras, and e-book readers. MP3 players topped the list for teens, followed by gaming systems, cellphones, digital cameras, portable gaming devices, gaming peripherals, and netbooks. Many PC manufacturers had expected netbooks to be higher on kids' lists, but they seem to prefer more powerful laptops this season.

Consumers were also asked when they plan to buy their holiday gifts. According to the results, 16 percent bought them in September, 19 percent in October, 33 percent will buy them in November, and 25 percent are waiting until December. Seven percent of those who responded don't buy gifts at all. There is an interesting dynamic at play here that doesn't necessarily show up in the responses to this question. Gift cards have become a big part of the holidays, and while some consumers spend them the week after Christmas, other surveys have shown that many don't use them until January or February. According to the CEA survey, 28 percent of consumers will buy gift cards from places like Best Buy, but in a lot of cases, these stores won't see them redeemed until well after the holidays are over.

But the most interesting part of this survey may well be the calls CEA makes to its association members, in order to get a sense of the types of bargains we'll see on Black Friday, that huge jumpstart to the holiday season that falls the day after Thanksgiving. While all of the major stores have Black Fridaysales, it's the tech sections at retailers like Wal-mart, Best Buy, and Radio Shack that drive a big portion of the pre-holiday sales.—Next: Deals We Can Expect to See >

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