Executive Briefings

Why This Year's Top Tech Gifts Cost About a Grand

You may notice something different about the prices of the tech products that companies are pushing the hardest this year: They're four digits.

Technology companies, which make the bulk of their money during the holiday season, are starting to diversify more and move upscale. Which means there are more Lamborghinis and Ferraris of tech sitting in the spots that used to be occupied by Lexuses. (Splashy tech gifts, after all, are never that cheap.)

Take mobile phones released this fall, for instance: Apple's newest premium phone, theiPhone X, is $999 — far more than the $649 that used to net you the latest iPhone. Samsung's Galaxy Note 8 starts at $950, up from $850 from last year.

The same is true of marquee products from Google. Its new Pixelbook laptop, the latest member of its generally cheap Chromebook line, is selling for $999. (You can get a Chromebook for about $300, on average.) And Microsoft's Surface Book 2, which has a detachable 13-inch screen that makes a tablet out of your laptop, remains $1,500 to start — unless you're tempted to buy the new $2,499 15-inch model.

Compare those prices against the average amount that U.S. adults plan to spend on tech gifts this year: $478, according to the Consumer Technology Association, a tech industry lobbying group. Even among the biggest potential spenders (in this case, adults between 35 and 44), the average is just $674. While an average may not represent what everyone's willing to spend, it is notable that the price of just one gift can be more than double that budget.

Read Full Article

Technology companies, which make the bulk of their money during the holiday season, are starting to diversify more and move upscale. Which means there are more Lamborghinis and Ferraris of tech sitting in the spots that used to be occupied by Lexuses. (Splashy tech gifts, after all, are never that cheap.)

Take mobile phones released this fall, for instance: Apple's newest premium phone, theiPhone X, is $999 — far more than the $649 that used to net you the latest iPhone. Samsung's Galaxy Note 8 starts at $950, up from $850 from last year.

The same is true of marquee products from Google. Its new Pixelbook laptop, the latest member of its generally cheap Chromebook line, is selling for $999. (You can get a Chromebook for about $300, on average.) And Microsoft's Surface Book 2, which has a detachable 13-inch screen that makes a tablet out of your laptop, remains $1,500 to start — unless you're tempted to buy the new $2,499 15-inch model.

Compare those prices against the average amount that U.S. adults plan to spend on tech gifts this year: $478, according to the Consumer Technology Association, a tech industry lobbying group. Even among the biggest potential spenders (in this case, adults between 35 and 44), the average is just $674. While an average may not represent what everyone's willing to spend, it is notable that the price of just one gift can be more than double that budget.

Read Full Article