Financial Times FT.com

Electronics bargains for US consumers spell trouble for the industry

By Richard Waters in San Francisco

Published: November 20 2008 02:00 | Last updated: November 20 2008 02:00

Reluctant US shoppers look certain to be tempted by big bargains this holiday season with 32-inch LCD televisions going for $400, small laptop computers for $300 and 8-megapixel digital cameras for $100.

Buyers of digital gadgets have learnt they can always expect to get more for less as deflation is built into the business model of the consumer electronics industry, as components become cheaper and more powerful.

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