They claim that average sell prices are down 25%, but top line growth of 17% was supported by strong volume growth in flat panel TVs, computers, MP3 players and navigation.
Price deflation by category: Laptops -2.6%, navigation -33%, digital cameras -29%, MP3 -15%, ink -8% and memory sticks -30%.
Analyst Craig Woolford said that consumer electronics was very weak in the last three weeks of June. However he said that an analysis of Dick Smith and Power House store sales for the first 2 weeks of July has been the opposite with buoyant trading.
Contributing to this is the July role out of massive promotions by TV vendors trying to capitalize on the upcoming Beijing Olympics.
He said that both Big W who are a major shifter of gaming, music and video content and Dick Smith were set to move to new format stores within supermarkets in an effort to capture a larger share of the consumer electronic market.
