If there were ever a time to hunt for bargains in tech, it’s now. Prices for many must-have gadgets are low as lackluster demand forces manufacturers and retailers to slash prices. “Most categories continue to see [above seasonal] price declines,” says Stephen Baker, vice-president of industry analysis at researcher NPD Group. The Consumer Electronics Assn. expects consumer electronics sales to slump 0.6 percent, to $171 billion this year. According to PriceGrabber.com, average selling prices on laptop computers, flat-panel TVs, navigation devices, and the like are on the decline. But there are signs that the pace of price declines may slow in the coming months. Serial price slasher Circuit City has closed its doors, reducing pricing pressure on other retailers. Demand is expected to rebound in the second half, and component prices are starting to rise. Prices of components such as flash memory, used in cell phones, and some types of digital storage used in items like computers are starting to recover, says Bill McClean, president of researcher IC Insights. Suppliers of many types of components have already increased prices by 2 percent to 23 percent since December, in some cases for the first time in two years, he says. Component prices may rise even more in the second half as electronics manufacturers gear up for the holiday season, McClean says. With component prices rallying, gadget manufacturers like Hewlett-Packard, Sony, Nokia, and others may be forced to choose between raising prices on finished items or holding prices steady at the risk of cutting their margins. Less Pressure on Best Buy Circuit City, which historically has accounted for about 10 percent of total U.S. electronics sales, closed its stores in March. After filing for bankruptcy protection last fall, the electronics retail chain slashed prices through the holiday selling season. Its disappearance reduces pressure on other retailers…

Original post:
Gather Ye Tech Bargains While Ye May

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