Consumer technology hardware sales in the United States fell 0.5% percent in 2011, ending the year just shy of $144 billion according to market research firm The NPD Group. Roughly 60% of all sales were from PCs, TVs, tablets, eReaders, mobile phones and video game hardware, NPD said. Computers generated the most revenue with nearly $28 billion or roughly 20% of sales, with tablets and eReaders doubling sales to $15 billion in 2011. For the second year in a row, Apple led all consumer electronics brands and was the only one to increase sales during the holiday quarter, posting a 36% year-over-year increase. The Cupertino-based company accounted for 19% percent of all sales, almost double second-ranked Hewlett-Packard. Best Buy was the top retailer for the second year in a row, followed by Walmart and Apple respectively, with Staples and Amazon tied for fourth place. Online, direct mail and TV shopping channel sales increased 7% and accounted for 24% of all sales, up from 22% in 2010. Read on for NPD’s press release. More →
Tablet owners spend big bucks online according to a new report. In fact, the new study published by Adobe Digital Marketing Insights suggests that tablet owners spend 50% more per purchase than smartphone owners on retail purchases, and over 20% more than PC users. The study found that smartphone owners spent about $80 per purchase on average but tablet owners spent an average of $123. Laptop/PC users spent $102 per retail purchase on average in 2011. Tablet owners are three times more likely to make a purchase on a retail website than a smartphone user is, too. Adobe Digital Marketing Insights gathered its data from more than 150 U.S. retailers last year and more than 16.2 billion transactions made online. More →
Last week rumors began to circulate that Apple was planning to open itsy bitsy retail stores in as many as 25 Target locations. During a presentation on Thursday, Target confirmed that it will have 25 stores featuring “special displays” of Apple products. Neither company has provided details on the partnership, however it will likely be similar to Apple’s deal with Best Buy, which sells the company’s products from dedicated mini stores within more than 600 Best Buy locations. More →
Apple may be planning to open retail stores inside as many as 25 Target locations, according to recent rumors. The partnership would likely be similar to Apple’s deal with Best Buy, which sells the Cupertino-based company’s products from dedicated mini-stores within more than 600 Best Buy locations. AppleInsider said Friday that Apple is likely interested in Target so that it can offer its products in markets that are too small for a full blown Apple Store. Apple’s senior vice president of retail operations, Ron Johnson, once served as an executive at Target, so there is a new link between the two companies that could add some weight to this rumor. More →
Best Buy on Friday reported weaker than expected revenue for the five weeks ended December 31st, 2011. The company noted $8.4 billion in revenue, which was flat compared to the same period last year but included a comparable store sales decline of 1.2%. The company’s international segment generated $1.9 billion in revenue, a 1.7% decrease and a 4.3% drop off in store sales. Its domestic segment generated $6.5 billion in revenue, which was up 0.4% from the same period last year but it also represented a 0.4% drop in store sales. Read on for more. More →
Amazon’s new Kindle Fire was a hot item during the holiday shopping season, and one analyst believes the new Amazon tablet may have cost Apple well over $1 billion in holiday iPad sales. Morgan Keegan analyst Travis McCourt on Tuesday lowered his December-quarter iPad sales estimate from 16 million units to 13 million. Hot sales of the Kindle Fire ahead of the holidays are responsible for trimming sales of Apple’s iPad by between 1 million and 2 million units, the analyst believes, making Amazon’s new slate the main reason for McCourt’s slashed forecast. Read on for more. More →
Research In Motion’s debut tablet has been something of a disappointment for the Waterloo, Ontario-based vendor. While the slate showed promise, it failed to offer potential users a compelling reason to choose it over the iPad or an Android tablet, and RIM would end up taking a $485 million charge in the third fiscal quarter due to unsold PlayBook inventory. Sale pricing ahead of the holidays last year seemingly helped RIM and its distribution partners clear out some stock, however, as the company is once again offering discounts on its QNX-based tablet. While pricing starts at $299 rather than $199 this time around, all three PlayBook models cost $299, which means the 64GB version can be had for a deep $400 discount. RIM’s first major update for its tablet OS set to bring native email and more next month. More →
Amazon announced on Thursday that the 2011 holiday season was the best ever for sales of its Kindle devices. While the online retailer didn’t specifically say just how many devices were sold by model, it did say Amazon customers purchased “millions of Kindle Fires and millions of Kindle eReaders” and more than 1 million devices per week during the month of December. The company also noted that its #1 and #4 best-selling eBooks released this year were published by independent authors through its Kindle Direct Publishing platform. “We are grateful to our customers worldwide for making this the best holiday ever for Kindle,” Amazon.com CEO Jeff Bezos said. “And in a huge milestone for independent publishing, we’d also like to congratulate Darcie Chan, the author of ‘The Mill River Recluse,’ and Chris Culver, the author of ‘The Abbey,’ for writing two of the best-selling Kindle books of the year.” The Kindle Fire was the most popular device followed by the Kindle Touch and the Kindle. Amazon also said that gifting of Kindle eBooks jumped 175%, between Black Friday and Christmas Day, compared to last year. Amazon’s full press release follows after the break.
U.S. Consumers spent $35.3 billion during this year’s holiday season, up 15% from the same period last year. Shoppers also spent a total of $2.8 billion during the week ended December 25th, up 16% from the same week in 2010, comScore reported. “Holiday e-commerce spending has remained strong throughout the season, and we have now reached a record $35 billion in U.S. online sales for the season-to-date,” said comScore chairman Gian Fulgoni, noting that the record $1.25 billion spent on Cyber Monday represented the heaviest online spending day for the second straight year. ComScore also said that there were a total of nine days during the holiday season during which consumers spent more than $1 billion. The research firm noticed a spike in digital content and subscription sales on Christmas Day, no doubt as a result of consumers loading up their new tablets, computers and phones with applications. Digital content and subscription purchases typically counted for 2.8% of all e-commerce sales during the holiday season, but that figure jumped to more than 20% on Christmas Day. ComScore’s full press release follows after the break. More →
M-Edge Accessories has filed a lawsuit against Amazon with a federal court in Maryland that accuses the online retailer of bullying it into coughing up higher commissions in exchange for better placement on Amazon’s website. M-Edge Accessories isn’t just filing a suit for extortion according to The Wall Street Journal, however — the accessory maker is also accusing Amazon of patent infringement, false advertising, creating unfair competition and hampering M-Edge’s customer relations. Amazon reportedly played some pretty dirty games with M-Edge in order to secure a larger percentage of commissions. M-Edge said it initially signed a deal with Amazon that would provide the retailer with a 15% commission on all goods sold. Amazon allegedly came back two months later and demanded a larger 32% commission. When M-Edge declined, an executive told M-Edge that Amazon would “de-list,” “play” with, or bury the accessory maker’s products so that “no one will be able to find you.” M-Edge eventually signed a new contract with Amazon, but it had to pay $6.5 million in commissions in order to do so. Even still, Amazon allegedly left its products off of the “Amazon Approved Accessory Maker” list. M-Edge is also suing Amazon for patent infringement and is arguing that it holds a patent for a Kindle case with a built-in reading light. More →
Italy’s Antitrust Authority has fined Apple Sales International, Apple Italia Srl and Apple Retail Italia a total of $1.2 million for “unfair commercial practices.” According to The Wall Street Journal, Apple’s Italy-based retail stores were fined €500,000 ($653,000) for not providing customers with adequate information about its AppleCare Protection Plan warranties, and an additional €400,000 ($523,00) for not being completely transparent about the length of product guarantees. The fines are a bit surprising, considering that Apple is typically praised for customer satisfaction in the United States. Apple has not commented publicly on the matter. More →
Users of Apple’s iPhone smartphones and its iPad line of tablets accounted for 92% of all mobile purchases made thus far in December, a recent study by eCommerce company RichRelevance found. That figure is up from April 2011 when a similar study conducted by the firm found that Apple’s iOS devices accounted for 88% of non-desktop online shopping. Beyond being more frequent shoppers, RichRelevance also found that iOS users are bigger spenders than their Android counterparts — the average purchase made from an iOS device was $123 in December while the average Android-originated mobile purchase amounted to $101. Both iOS users and Android users top those who shop from desktop PCs, as they spent an average of just $87 per order in December according to the company. Overall, RichRelevance found that shopping from mobile devices has doubled from 1.87% of all online shopping to 3.74% over the past nine months. More →
