Black Friday: Are PCs and software as hot as gadgets?

By Jacqueline Emigh | Published November 26, 2007, 5:58 PM

How did PCs and software fare in comparison to other consumer electronics products on the day after Thanksgiving? The answer may depend on where those products are sold - online or up front - according to NPD's chief analyst.

HDTVs, MP3s, GPS, and other emerging gadgets seem to be outshining established electronics products categories such as PCs and software in Black Friday sales and promotions -- in brick-and-mortar stores, at least.

A number of industry reports are ranking laptops as popular items among Black Friday and other holiday shoppers. But by and large, PCs and Microsoft Office are not the sorts of items that resellers are selling as doorbusters -- and which consumers are standing in line to grab up at cheap prices, starting in the wee hours of the morning, said Stephen Baker, vice president of analysis at the NPD Group.

NPD's numbers for Black Friday 2007 aren't in yet. But GPS devices and digital picture frames appear to be some of the products discounted most heavily and gobbled up most enthusiastically by shoppers, according to Baker.

"These two product markets are both rather under-penetrated right now. And the products are typically priced at $150 or less, meaning that they're very accessible to a lot of people," he explained.

In a survey of this year's holiday shopping patterns conducted by Deloitte & Touche, 45% plan to buy CDs, DVS and tapes. Meanwhile, 48% plan to purchase games, and 20% of those surveyed say they'll purchase games, said Gary Levin, a partner in Deloitte's retail practice.

But retailers and manufacturers are still running special price promotions this year around traditional computer and software products, right? Yes. But generally speaking, these are more along the lines of the typical promotions extended in stores during the holiday shopping period, according to Baker.

"With people buying PCs as holiday gifts, prices might be reduced a bit on office [applications] and on antivirus software," he acknowledged.

Moreover, among consumers stopping in at retail stores, the OS that happens to be running on the PC doesn't really matter all that much, according to the NPD analyst.

"Consumers who are buying PCs don't really care whether they're getting (Microsoft) Vista," Baker maintained. Similarly, Apple is doing well in retail stores with Macs. "But consumers aren't buying Macs because of Leopard or any other Apple 'cat,'" according to the analyst.

Moroever, the Linux-enabled PC that's been flying off the shelves at Wal-Mart over the past week is popular in brick-and-mortar stores mainly because it's priced at $199, not because it's based on Linux, he said.

"In fact, this might not even be an appropriate product for Wal-Mart stores to be selling, since a lot of Wal-Mart cusotmers might have trouble using these PCs," Baker noted.

Essentially, individuals who are technically savvy are more likely these days to buy their Macs and Windows- and Linux-enabled PCs online than in stores, according to the analyst. "I'd expect that long-time Apple users would go to Apple's Web site, for instance," he said.

Indeed, although the top sellers online also were dominated by products such as Nintendo's Wii game console and GPS devices, a survey on online buying at PriceGrabber.com shows Microsoft Office 2004 Student and Teacher software in sixth place among specific products sold on Black Friday, and laptops in sixth place among the product categories sold that day.

Meanwhile, numbers released today by Nielsen Co. show that online shopping on the day after Thanksgiving grew 10% this year, with Wal-Mart ranking third in this year's list of online shopping destinations, after InterActiveCorp. and Amazon.com, in that order.

Comments

View comments by with a score of at least

Are PCs and software as hot as gadgets?

Depends. Are they all powered by Sony batteries?

Score: 0

|

>>> Depends. Are they all powered by Sony batteries?

;-)

Score: 0

|

dated...but still funny.

Score: 0

|

As opposed to yourself: Never dated and lame?

Ba-dum-Bump. ;)

Score: 0

|

Comcast deal for NBC Universal is about content, not broadband

Although Comcast is certainly America's largest broadband provider, at least for PCs, in most regards, today's deal with GE may not impact the Internet at all.

Mark Russinovich on MinWin, the new core of Windows

The next version of Windows three years hence will likely build onto a significant architectural change implemented in Windows 7 and Server 2008 R2.

Fee or free? Murdoch, Huffington square off over the cost of Internet news

Participants in an FTC workshop yesterday witnessed the two extremes of the Web news publishing debate, still centered on the issue of long-term profitability.

Security firm: Windows patches not responsible for 'Black Screen of Death'

On second thought, maybe that access control list thingie with the lockdown something-or-rather didn't trigger an alleged, perhaps non-existent, pandemic.

Online advertising evolves away from display, toward interactive software

Marketing departments and agencies are increasingly establishing positions for "creative technologists" who can steer designers and developers toward platforms that enable direct connections with consumers.

Google begrudgingly adjusts news crawling for paid publishers

If publishers want to make readers pay for news content, and thereby drive down its popularity and Google ranking, the company says, they can just go right on ahead.

Apple settles with Psystar except for 'circumvention devices'

The fracas with the Florida clone computer maker might have ended today had Apple not have muddled the issue over a cheap piece of Psystar software.

Microsoft denies latest 'Black Screen of Death' claims

After an anti-malware producer announced a fix to what it says is a swarm of recent KSoD problems, evidence of the swarm itself has yet to turn up.

Latest Firefox 3.6 beta fixes 133 bugs, promises faster page load times

A once-sluggish beta testing process has kicked into overdrive, with astonishing success at finding serious bugs. Will Mozilla be able to fix all the others in time?

Confirmed: Office 2010 to ship in June

Two weeks after Microsoft had been expected to draw a clearer roadmap for its principal applications suite, it's finally ready to commit to the end of H1.

New EU antitrust commissioner will oversee Microsoft, Oracle+Sun, Intel issues

As one of Europe's most prominent politicians shifts positions in January, her replacement remains a question mark over technology's biggest issues.