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What Will Consumers be Buying for the Holidays

Boot Camp feature for Thursday, November 22, 2007

What will consumers be buying for the holidays? Lots of consumer electronics. Bloomberg Boot Camp, a report on today's technology. A lot of families may be struggling with higher gasoline and food bills…and heating costs this winter are rising as well. Add the credit crunch and falling house prices….and that spells plenty of worry. But at the Consumer Electronics Association, the forecast is still for seven percent sales growth over last year. CEO Gary Shapiro….

"Well what we're seeing is with a weak dollar, money is being spent less on travel and more on your house and things like that. The stock market. I guess it depends what day you look at it, whether it is up dramatically or down dramatically. That may affect people. Obviously the mortgage foreclosure rate has to have an impact especially on the people whose house is being foreclosed. But it also may impact those who are making a moving decision and rather than move, they'll want to invest in their home. Which could mean a home theatre system, a home office, it could mean basic investments which will last for a while."

And about the kinds of consumer electronics in most demand this holiday season, Shapiro says….

"Well we've done some research on that as well as we do every year and what we see is HDTV, personal computers and MP3 players are on everyone's wish list." The MP3 players have been at the top of the holiday wish list in your survey, how much credit does Apple get for generating enthusiasm? "Apple gets a tremendous amount of credit for their design and for making it exciting. There's a tremendous amount of competition and excitement out there. And obviously all the services on the Internet are just fantastic."

CEA CEO Gary Shapiro. Bloomberg Boot Camp, I'm Fred Fishkin.