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Tuesday, Dec. 1, 1998

Stockings to bulge with high-tech toys

DVD players, Dolby receivers, computers expected to move briskly as prices fall

Jeffrey Tomich
Staff Writer

   Whether it's DVD players, wireless telephones, pagers or computers, industry analysts say digital and other high-tech goods will drive holiday sales in 1998.
   Fifty-three percent of analysts surveyed by the International Council of Shopping Centers believe sales of computers and home electronics will be particularly strong this year.
   Among the hottest products in Corpus Christi this year are DVD, or digital versatile disk, players, local merchants say.
   Whether installed inside computers or as separate units, DVDs can play movie disks that provide a crisper sound and shaper image than traditional video cassette recorders. The disks often have added features such as multiple languages and subtitles, interviews with directors and cast or biographical information about the cast.
   The digital playback machines aren't exactly new. They were available last holiday season, but demand was harnessed by the limited availability of movies on disk, retailers said.
   That's changed this year, fueling demand for DVD players locally, Absolute Audio Video manager Robert Ercanbrack said.
   The Consumer Electronics Manufacturing Association expects nationwide sales of DVD players to hit 800,000 this year and 1.4 million in 1999 - making DVD a faster-selling technology than either VCRs or CD players.
   

Electronic wish lists

   Also topping the wish list for audiophiles this holiday season are Dolby Digital sound receivers, units that function as the nerve center of the next-generation home theater system.
   Dolby Digital succeeds Dolby Pro Logic, and is capable of delivering a higher-quality sound, especially through rear speakers of surround systems, said Alan Levens, general manager of Audio Video Sales & Service.
   Computers are hot for 1998, too, as prices have dropped dramatically from a year ago.
   Manuel Vasquez of CompUSA in Corpus Christi said bundled packages that include computers, monitors and printers for less than $1,000 are available from most major manufacturers like IBM, Compaq and Hewlett-Packard.
   The same computer packages, which cost as little as $700 today, were going for twice that much a year ago, he said.
   Sales of other computer-related accessories are on the rise this season because their prices are falling.
   Digital cameras that sell for $200 were four times as expensive a year ago. And digital scanners that can read text or images can now be had for $35 or $40 rather than $300 or $400.
   Ron Patterson, service manager at D&D Computer Warehouse, said DVD drives are also becoming increasingly popular in personal computers.
   "Prices are coming down where more people can afford them," Patterson said. "I can see that market blossoming in the next several years."
   

PCs are hot items

   According to the Consumer Electronics Manufacturing Association, PCs top holiday gift wish lists for men and women in 1998 with combination PC-televisions and home stereo systems ranking second and third, respectively.
   An industry survey shows 30 percent of consumers, or 30 million households, plan to buy video products as a holiday gift. Also, 30 percent plan to buy an audio product; 27 percent plan to buy a computer product; and 18 percent plan to purchase a mobile electronics product.
   Despite the emergence of DVDs, however, the association says video cassette recorders are the video product consumers are most likely to buy this holiday season.
   Following computer-related products and electronics, big sellers in 1998 are likely to be household goods, like linens and appliances, and entertainment products, such as CDs and video games, according to analysts surveyed by the shopping center trade group.
   And despite the never-ending lines outside of toy stores Friday and the frenzy about Furbies, just 15 percent of analysts polled predict a particularly strong year for toys.
   The survey also polled analysts about what type of retail formats they think will grab the biggest share of sales during the holidays.
   Responses indicated discount stores, specialty stores, warehouse clubs and on-line retailers will capture a greater percentage of total holiday sales in 1998, while department stores and factory outlets will see less activity.
   On Retailing is published each Tuesday in the Staff Writer business section. On Retailing items include new and expanded businesses and retail trends. Items for consideration should be submitted to: On Retailing, Corpus Christi Staff Writer, P.O. Box 9136, Corpus Christi, 78469; e-mail Jeffrey Tomich at tomichj@scripps.com; fax items to (512) 886-3732; or call (512) 886-4316.

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  © 1998 Corpus Christi Caller Times, a Scripps Howard newspaper. All rights reserved.