Categories such as smartphones and smartwatches are benefitting as consumers spend more time away from home, says NPD.
More than one-third of consumers expect to purchase a consumer electronics product this holiday season.
That’s according to The NPD Group’s annual Holiday Purchase Intentions report. The study found 36% of consumers expect to purchase a consumer technology product this holiday. That is slightly down from last year (37%) and up from 2020 (33%).
Among consumer electronics categories purchase intent was highest for smartphones, followed by headphones, tablets/e-readers, and smartwatches this holiday.
Consumers with high discretionary income are the main driver of smartphone demand. In fact, 27% of respondents with an annual household income over $150,000 noted interest in purchasing a smartphone this holiday while only 13% showed interest in the $75,000- $150,000 income group and 12% of those with an income below $75,000.
Following smartphones, consumers reported interest in purchasing headphones and tablets/e-readers this holiday, with smartwatches rounding out the top four. Notably, interest in purchasing a smartwatch hit a three-year high and had the strongest year-over-year interest gain of any CE category.
“Excitement around newly released devices and a longer stretch of holiday promotions will help determine what consumers purchase this holiday season,” said Ben Arnold, executive director and technology industry analyst for NPD. “In addition to these high-interest categories, TVs and smart home products remain CE staples during the holiday timeframe. We can expect promotions to drive unit sales in these categories for the fourth quarter.”