Holiday Consumer-Electronics Sales Fell 5%

U.S. consumers spent 5% less on consumer electronics during the last holiday season compared to a year earlier, research firm NPD Group announced Wednesday. For the nine weeks leading up to Christmas Day, U.S. shoppers spent $14.9 billion on electronics, according to the group's report.

Americans bought fewer flat-screen televisions and desktop computers, as well as lower-end digital cameras and MP3 players, the NPD says.

Sponsored Links

"Record sales in 2009 across major categories such as notebook PCs and TVs, combined with a significant slowdown in the pace of price declines created a difficult headwind for the industry in 2010," Stephen Baker, vice president of industry analysis at NPD, said in a statement. "Tech consumers ignored early season promotions, and instead keyed in on the traditionally price-aggressive deals offered during Black Friday and the week before Christmas."

The report did include at least one silver lining: Spending on products such as smartphones and tablet computers surged as consumers gravitated toward portable devices.

Still, the portable-electronics growth was more than offset by a 16% drop in the number of desktop computer sold. Revenue for flat-screen TVs also fell, leading retailers to cut prices on liquid-crystal display and plasma TVs to move more of them, according to NPD.

This dip in consumer-electronics spending came as overall U.S. holiday spending rose about 4% from a year earlier, according to the National Retail Federation.

Read Full Story

Can't get enough personal finance tips?

Sign up for Finance Report by AOL and get everything from consumer news to money tricks delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.