Stay-At-Home Economy Boosts Tech Spending
The ‘stay-at-home’ economy is boosting the sales of high-tech consumer goods, according to a report from Mintel, which says the UK will spend £50 billion on high-tech goods this year, for the first time.
“In many ways, the recession has had a positive effect for the technology market” says Jim Clark, senior technology analyst at Mintel, “we’ll see continued success of games consoles, the Wii in particular, which has upped its motion sensor credentials. Next year the Xbox will be even bigger, with the expected release of ‘natal’. This is a motion-sensing device, with tie-ups with the likes of Sky, to broadcast on-demand content to Gold live subscribers, as well as link-ups with Last.fm, Twitter and Facebook, bringing web 2.0 to the big screen. Given that consumers are spending more time at home and looking for value, this will appeal as they look to the living room for their entertainment needs.”
HD TVs and DVDs, video-on-demand services, and top-of-the-range mobile phones are said to be benefitting from the stay-at-home economy.
Mediatek’s Q2 earnings report supports Mintel’s findings. ”Revenue for the quarter was up 15.7% sequentially, and up 23.4% year-over-year”, says Mediatek’s Q2 results statement, “digital TV IC demands were relatively intact, thanks to the “stay-at-home-economy” in the downturn.’
The trend is part of the ‘nesting’ syndrome brought on by economic depression, swine fever and the expense of travel. Other sectors benefitting are home-delivered pizzas, DVD rental shops and Tupperware parties.
The trend has thrown up the concept of the ‘Staycation’ where you take time off work but stay at home and get on-line.
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