NPDTECHWORLD^SM REVEALS HIGH-TECH BESTSELLERS DURING 2001 HOLIDAY BUYING SEASON

PORT WASHINGTON, NEW YORK, December 17, 2001 - A handful of technology categories are experiencing considerable growth during this holiday shopping season. Digital cameras, handhelds, home theater systems, removable memory and LCD monitors are leading the way, according to market information provider NPDTechworld^SM.

NPDTechworld's early indictor panel shows that the week of November 18-24, 2001, which includes Black Friday, brought positive news to both the consumer electronics and information technology industries. Black Friday is a closely watched day to gauge the success of the holiday shopping season, but given the events of September 11 and the state of the economy, the date has greater significance this year.

In the consumer electronics market, Digital Video Disc (DVD) players are the hot gift item for the 2001 holiday season. Along with DVD, projection television and home theater-in-a-box systems - with and without DVD players - were in high demand. Digital cameras, digital camcorders and digital wireless phones were also top holiday sellers.

"The products that are selling well are those that are fulfilling immediate 'needs' for entertainment and information," said Tom Edwards, senior analyst, NPDTechworld. "Low-end promotional products and the very high-end products have seen a drop as people defer their ‘wants' for future purchases and, most importantly, for the Christmas gift list."

Table 1: Consumer Electronics Categories - Black Friday 2001 vs. Black Friday 2000

Source: NPDTechworld

In the information technology category, computers, notebooks and printers continued a decline in sales versus last year's Black Friday results. On the bright side, sales of handhelds, networking products and digital cameras were up this year compared to last year, as consumers bought into categories that offer new technologies and new product uses, instead of buying into replacement markets.

"There is no better window on technology categories' changing fortunes than the sales activity surrounding the kick-off to the holiday shopping season, said Steve Baker, director of IT research, NPDTechworld. "When examining specific product groupings, it is apparent that every winning category had a close relative that was a loser during Black Friday. Blank CD media are selling well but the drives aren't. LCD monitors are selling well but PC monitors aren't. People are being more selective in their purchasing."

A snapshot of key retailers indicates that overall dollar sales in both the consumer electronics and information technology were up 11 percent compared to the year prior.

Table 2: Information Technology Categories - Black Friday 2001 vs. Black Friday 2000

Source: NPDTechworld