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Processing Intel Price Declines
Electronics | Jul 30, 09
A key line of Intel processors has accelerated a downward price trend begun earlier in the year.
We saw a resumption of significant deterioration in Intel Core 2 Quad pricing back in late April, which I took note of at the time (“Processor Price Drop Striking At Core Of Tech Recovery?”). That erosion has turned out to have been the start of a swoon which calls into question any nascent price stabilization in the processor market, and indeed in the broader computer and consumer high-tech spaces. As noted in our latest press release, last week saw a 4.8% fall in PriceSCAN.com’s Intel Core 2 Quad Index. This adds to a 9.5% drop in the second quarter of 2009, marking a significant pick-up in the pace of decline.
To be sure, there have been some recent signs of processor price strength in other chip lines – see “AMD Quad-Core Prices Rally From Early 2009 Swoon.” But the kind of price cuts we’re seeing in Intel’s Core 2 Quad series cannot help but put downward pressure on competitors’ chips. The winner could be the consumer: if computer manufacturers pass on reduced processor costs, we could see lower systems prices moving forward into the second half. This, combined with pent-up demand, greater economic optimism and the new version of Windows, could spur increased purchases. A bit of buyer relief, if not stimulus, perhaps in time for back to school shopping.
Posted by jeffrey.trester at 12:45 AM | Comments (0) | TrackBack
GPS Prices Continue Road Trip South
Electronics | Jul 21, 09
Automotive GPS prices seem to be charting a course downward.
I took note of the deterioration in automotive GPS prices a couple of times earlier this year, following a New Year’s rally in this market which proved short-lived (“GPS Can't Navigate To Higher Prices”, “Automotive GPS Prices Driven Down”). The southward trend continues, as noted in our recent press release, which highlighted last week’s 2% decline in the PriceSCAN Automotive GPS – Voice Recognition Index, coming hard on the heels of a 9% drop in June.
Indeed, since the beginning of 2009 this index has dropped by nearly a third. Neither the early summer driving season (which early reports have termed anemic) nor somewhat elevated gas prices seem do being doing much to put the breaks on this slide (note higher gas prices may increase GPS value by raising the cost of fuel wasted while lost or taking inefficient routes).
The GPS price collapse is strikingly illustrated by the Gamin Nuvi 885T, as of this writing the most popular automotive GPS with voice recognition unit on PriceSCAN.com. The lowest vendor offered price on our site was north of $740 in mid February, and has since plunged to around $390.
Time Period: 2/16/2009 through 7/13/2009
Each tick mark represents one week
Red = High Price, Blue = Average Price, Green = Low Price
With no anticipation of imminent revolutionary advances in auto GPS to drive prices lower, one has to suspect economic weakness is resulting in soft consumer demand for this technology, particularly in light of weak auto sales. Until we see some strength in retail, it may not be possible for automotive GPS prices to gain traction, let alone step on the gas.
Posted by jeffrey.trester at 11:14 PM | Comments (0) | TrackBack
LCD’s Racing Plasmas In Early Summer Price Drop Derby
Electronics | Jul 11, 09
Comparing LCD and plasma pricing this month has been a little like watching a cliff-diving competition.
On July 2, I commented on a six percent decline in PriceSCAN’s Plasma - 1080p - 50 Inch Index (“Big Plasmas, Big Price Drops”). Not to be outdone, last week our LCD TV – 1080p – 52 Index plunged an even more impressive 9%, as noted in our press release.
The movement of our overall index may have been foreshadowed by eroding prices of some popular models in the last few weeks; consider for example the Samsung LN52B750, currently the most sought-after 52” 1080p LCD set on this site. Vendors were asking at least $2,450 back in late April, from which the lowest offered price on PriceSCAN has fallen to around $2,000, a decline of over 18%
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Time Period: 4/20/2009 through 7/6/2009
Each tick mark represents one week
Red = High Price, Blue = Average Price, Green = Low Price
As noted previously, with the digital transition behind us, it seems flagging consumer confidence and overall economic weakness are continuing to depress prices in key sectors of the retail high-tech market. Indeed, as recent action in flat screens indicates, some price declines in the consumer electronics space are accelerating.
Look out below.
Posted by jeffrey.trester at 5:23 PM | Comments (0) | TrackBack
Big Plasmas, Big Price Drops
Electronics | Jul 2, 09
Those looking for economic “green shoots” in retail electronics pricing won’t find them in the market for large plasma televisions.
This week PriceSCAN’s Plasma - 1080p - 50 Inch Index fell 6%, as noted in our press release of earlier today. This decline comes at the end of the first half of 2009, a period which saw a fair amount of stability and even periods of price increases for big plasmas (to be sure, the preceding holiday and post-holiday seasons did feature some sharp plasma price retreats – see “Plasma Prices Taken Down With Holiday Decorations” and “Collapsing Big-Screen Plasma Prices A Valentine’s Gift To Consumers”). This fall comes shortly after deterioration in LCD pricing (”For LCD Sets, Lower Resolution Means Faster Price Drop”) and would seem to throw a bit of cold water on hopes for firmer consumer tech pricing.
In fairness, some 50” 1080p plasmas have been declining in price for weeks, including the most popular one on PriceSCAN, Panasonic’s TC-P50G10 VIERA. The lowest vendor price on this site for this model was at $2,000 the middle of March, but has since dropped about 35% so that it now may be had for less that $1,300.
Time Period: 3/16/2009 through 6/29/2009
Each tick mark represents one week
Red = High Price, Blue = Average Price, Green = Low Price
This recent decline in larger plasma prices may indicate retailers feel compelled to cut prices as consumer confidence fades. Plasma prices are also falling in the wake of the switch to digital transmission, so perhaps some demand associated with the lead-up to that transition has now been removed from the marketplace.
Posted by jeffrey.trester at 4:50 PM | Comments (1) | TrackBack
