Tax Rebates Help, but U.S. Economic Situation Has Mixed Effect on Consumer Spending

40 percent of consumers likely to use tax rebate for CE purchases, but economic concerns will impact spending

DALLAS, April 30 /PRNewswire/ -- Tax rebates will impact sales of high-definition TVs and personal computers this year, but economic concerns among consumers will limit the growth to more modest levels, according to Parks Associates' Consumer Electronics Purchases: Quarterly Monitor.

"Consumer sentiment regarding CE purchases is mixed," said Kurt Scherf, vice president, principal analyst, Parks Associates. "The tax rebate will boost some sales, but we are seeing pronounced signs of spending restraint among consumers as they feel more uncertainty about the country's economy."

According to the study, 40% of consumers in U.S. Internet households will use the tax rebate to purchase consumer electronics products, but 42% cited economic concerns as a factor in their decision not to purchase CE this year. Still, consumers indicated they will limit spending in other areas before cutting home communication and entertainment services.

"Consumers are more likely to cut expenditure on groceries than on home communication and entertainment services," Scherf said. "Purchase intentions for HDTVs and PCs are high -- both overall and specifically with the tax rebate -- but these purchases will be sacrificed first if the economy sours further. Less likely to be cut are purchases of mobile and personal electronics, such as game consoles, GPS, and portable media players."

Consumer Electronics Purchases: Quarterly Monitor is a survey of U.S. Internet households from April 2008. It examines consumer electronics purchase intentions, including those planned because of the tax rebate, and provides data on the impact of the current U.S. economic situation. For more information, contact 972-490-1113 or sales@parksassociates.com.

About Parks Associates

Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

Each year, Parks Associates co-hosts executive thought leadership conferences CONNECTIONS(TM) and CONNECTIONS(TM) Europe in partnership with the Consumer Electronics Association (CEA(R)). In addition, Parks Associates produces the online publication Industry Insights in conjunction with the CONNECTIONS(TM) Conference series.

  http://www.parksassociates.com/
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   Contact: Chelsey Tyson
   Parks Associates
   972-490-1113
   Email: chelsey@parksassociates.com

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CONTACT: Chelsey Tyson of Parks Associates, +1-972-490-1113, chelsey@parksassociates.com

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