Tech Sales to Grow Less Than 1% This Holiday, After Strong 2020, Says CTA

After an outsized 2020 season, when the COVID-19 pandemic drove consumers to invest heavily in home office and home entertainment products, spending on tech during the holiday season will grow just 0.5% year on year to $142.5 billion October-December, said CTA Tuesday. The October-December spend in 2020 was $141.8 billion, a 10.9% increase from 2019.

An online survey of 2008 consumers Sept. 9-13 showed an average outlay of $541, with shoppers expecting to spend 41% of their budget on themselves, 37% on their spouse. About 191.3 million U.S. adults plan to buy technology as a gift this holiday season, a record high, CTA said.

The top five wish list items are smartphones, laptop computers, wearable devices, TVs and video game consoles and tablets/e-readers tied for fifth, said CTA. A “notable change” from recent years is the trend for retailers to “pull forward and capture sales earlier in the holiday season -- particularly in the wake of recent and ongoing supply chain challenges many consumers are actively watching,” said Lesley Rohrbaugh, CTA director-market research.

Forty-eight percent of holiday tech shoppers are expecting to buy a smartphone as a gift, up from 41% in 2019. Sixty-two percent of overall holiday smartphone buyers expect to buy a 5G phone; 29% plan to buy a foldable model.

COVID-19 has propped up interest in health and safety products, said CTA, citing 29% interest in smart or connected health monitoring devices, such as those used to measure body temperature, sleep patterns or blood pressure; 32% interest in buying a smart home security camera; and 24% interest in buying smart cleaning devices such as UV light sanitizers. About 45% plan to buy a video game console; 71% plan to buy at least one content-related product this season, such as a gaming, video, fitness or audio streaming services, CTA said.

The work-at-home theme will continue to play out this holiday season, CTA said, as consumers look to expand or “accessorize” their home office workspaces. Twenty-nine percent of respondents planned to buy a printer, 27% a desktop PC and 25% a computer monitor purchase, it said.