Consumer electronics are doing well this holiday season but plummeting prices everything from computers to television has retailers worried.
Best Buy announced Tuesday that earnings quadrupled for the third quarter and that revenue has gone up; attributing the improvements to the sale of lower-priced electronics. Netbook computers and smaller televisions were the biggest sellers, which rather than boding well for the economic improvement, has retailers worried.
The slipping prices of gadgets have the potential to detract from fourth quarter profits according to the retailer, whose shares sank 8.5 percent to $41.53 in afternoon trading.
The prevalence of lower-priced gadgets has the potential to detact from Best-Buys fourth-quarter profits
Industry predictions coming from the Consumer Electronics Association anticipated revenue will fall as much as 6 percent as a result of the slim profits produced by lower-priced electronics.
The number of units sold is going up but that doesn’t mean revenue is ascending along with it. People are opting for the smaller flat-panel televisions rather than the larger ones this season, cutting corners everywhere they can and leaving retailers to wonder how long this trend will last.
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