Most people's purchasing power may be declining but that doesn't stop them from craving for the latest gadgets. The Consumer Electronics Association reported this week that sales of gadgets are booming as people hunker down in their homes to weather the brutal economic climate:
CEA claims sales of flat-panel TVs are up a stunning 40 percent from last year and that the videogame industry is poised to do more business in the holiday season than it did last year.
"Consumers are cocooning; hunkering down," DuBravac told AFP.
"And since they are not traveling to see grandma this holiday season they might as well be able to talk to her on the mobile telephone of their choice."
While cutting back on nights out at movie theaters, people are evidently rewarding themselves with electronics that provide more cinematic viewing experiences at home, according to the CEA.
"It seems that part of the story here is that people cutting back and living with 'good enough' everywhere else in their lives figure they might as well enjoy flat-panel televisions and other electronics."
Some industry forecasts cited by the CEA project that consumer electronics sales will be more robust this year-end holiday season than they were last year.
Laptop computers, mobile telephones and satellite-linked navigation devices are among the electronics selling strong as portability remains a lure for gizmo buyers.
"During the past two recessions consumers did cut back on CE (consumer electronics) spending," DuBravac said. "I think we are clearly in the midst of a recession right now and yet we haven't cut back on our CE purchases."
People appear to be shifting discretionary spending from cars, travel or other big ticket items to home electronics gadgets, particularly those that promise to last a few years.