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NPD INTELECT REPORTS ‘TIS THE SEASON FOR TECHNOLOGY

 

Firm Identifies Fastest-Growing Items Based on Year-over-Year Sales

PORT WASHINGTON, NEW YORK, December 6, 2000 –While PC desktop sales may be lagging, a handful of technology categories are experiencing sizzling triple digit sales growth. These and other top sellers suggest happy holidays ahead for many technology marketers, particularly those in the industry’s fastest growing categories, as identified by leading marketing information provider NPD INTELECTÒ Market Tracking.

"These products and others have shown dynamic growth, and everything suggests that the trend will continue," commented NPD INTELECT Director of Marketing George Meier. "Terms like digital and portable have become hot button words for this holiday season. If a product is digital or portable, it will likely hit consumers’ sweet spot. If a product is digital and portable, marketers could face difficulty in keeping up with consumer demand. Another magic word continues to be 'Internet'. Products that aid in storage and connectivity are likely strong performers," Meier said.

According to NPD INTELECT Market Tracking the plasma flat-panel screen TV was the fastest growing category. Although unit sales remain relatively low, purchasing shot up 263% in January to October 2000 compared to the same time period last year. And sales are increasing even as average price has increased to over $12,000.

Sales of DVD players were up 119% in unit terms, while their average selling price decreased 29.5%, which is likely to further spur sales.

Devices that are able to access the Internet, namely personal digital assistants and cellular phones, also have shown sizeable sales gains in 2000. According to NPD INTELECT Market Tracking, personal digital assistants and Web-enabled cellular phones grew 164% and 62% respectively in unit sales.

While PCs aren’t selling well this season, consumers are focusing on PC peripherals. PC cameras and digital still cameras, recordable-rewritable CD drives, and network devices have seen strong growth through the beginning of the holiday season.

 

Expected Big Sellers for Holiday 2000
Unit Sales by Category

Category

Unit Sales
Jan. – Oct. 1999

Unit Sales
Jan. – Oct. 2000

Percentage
Change

Plasma Flat-Panel
TV Screens

1,119

4,060

263%

PC Cameras

425,034

1,369,740

222%

PDAs

790,417

2,084,779

164%

DVD Players

1,411,469

3,095,388

119%

Digital Still Cameras

1,094,096

2,315,958

112%

Recordable-Rewritable CD Drives

1,095,719

1,930,721

76%

Network Devices

898,575

1,498,543

67%

Direct Broadcast Satellite

1,335,548

2,206,687

65%

CD Recorders

96,170

155,347

62%

Cellular Phones

1,536,559

2,486,827

62%

Source: NPD INTELECT Ò Market Tracking

 

Expected Big Sellers for Holiday 2000
Average Price by Category

Category

Average Price
Oct. 1999

Average Price
Oct. 2000

Percentage
Change

Plasma Flat Panel
TV Screens

$10,568.78

$12,414.39

17.5%

PC Cameras

$102.56

$75.06

-26.81%

PDAs

$339.08

$292.09

-13.86%

DVD Players

$331.70

$233.97

-29.5%

Digital Still Cameras

$621.99

$509.48

-18.05%

Recordable-Rewritable CD Drives

$220.75

$214.32

-2.91%

Network Devices

$221.96

$181.69

-18.14%

Direct Broadcast Satellite

$150.06

$135.78

-13.4%

CD Recorders

$496.67

$439.34

-11.5%

Cellular Phones

$111.39

$119.39

7.2%

Source: NPD INTELECTÒ Market Tracking

According to NPD INTELECT Market Tracking, several relatively new categories are also selling especially well and are expected to continue to do so through the year's end. Sales of MP3 players, personal video recorders, and digital televisions are all up significantly. MP3 players reached a monthly selling pace of almost 19,000 units in October 2000. Personal video recorders reached more than 9,000 units. Digital television sets, with an average retail price of $3,000, reached a selling pace of 31,000 units in October 2000.

 

 

 

 

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