Despite economic woes, TV sales are up

There may be some good economic news after all.  During an industry webcast yesterday, the Consumer Electronic Association predicted sales in certain gadget categories will rise despite the gloomy economy.  Flat panel TVs and gaming hardware should do well during the holiday shopping season they predict. 

The reason?  The CEA says people will ride out the stormy economy at home rather than going out to seek entertainment in an effort to save money and fight rising gas prices.  Since so many people will now be homebodies, they’ll turn to their TVs, game consoles and portable game machines such as the PSP and Nintendo DS for entertainment. 

“Consumer electronics is holding up well,” said CEA analyst Sean DuBravac, who delivered the CEA’s preliminary holiday projections in terms of units, as opposed to revenues. “We’re pretty confident that technology will outperform overall retail.”

The CEA says holiday sales of flat panel TVs and other A/V equipment will likely rise 4.7% and sales of gaming hardware will rise 3.5%.  Sales of consoles may go down but portable gaming machines, which cost less and are easier to find, will enjoy brisk sales.  According to the CEA many consumers simply don’t see money spent on gadgets as discretionary spending and as a result likely won’t stop spending on them.

As someone who just purchased a new flat panel TV and will likely be purchasing several more gadgets for gifts during the holiday season, I am happy to help contribute to those predicted sales figures! 

I predict sales of computers, especially low cost models, will also stay steady or rise-not only because they are such an ingrained part of most homes and businesses, but because many services cash-strapped consumers may consider cutting back on, such as cable TV and phone service, can be replaced with several free or low cost alternatives online.  Let’s hope the CEA is right.  We can use all the good news we can get!