Consumer Electronics

The consumer electronics industry is in the nadir of its seasonal cycle. The Chinese New Year (when all the Asian workers go home, including those who are not Chinese) has recently ended, so there has been no production news and no technology announcements.

The Super Bowl did not generate a buying spree of large TV sets. Retail inventories at those mass merchandisers I visit are still on the high side and it will be several months before they come down to more reasonable levels. In the meantime, TV producers are cutting prices to move inventory sitting in containers in Hong Kong and Singapore.

Westinghouse (not the old company but the buyer of the name) will be offering a 42" LCD TV for less than $700 at retail. This is the sweet spot for screen size at the moment. Street sale prices for an off-brand set this size is currently closer to $800, and premium brands are at $900.

So, if you are in the market for a new TV but don't actually need one I would suggest you wait for the start of the World Series, when you will get a better set at a lower price than you can buy today.

OPPORTUNITIES

We currently have no Buy recommendations under coverage in this space.

WEAKNESSES

We continue to rate Palm Inc. (PALM) and Sony Corp. (SNE - Snapshot Report) as Sells. Our ratings are Hold for Panasonic (PC - Snapshot Report) and Apple Inc. (AAPL - Analyst Report).

Read the full analyst report on AAPL

Read the full analyst report on PALM

Read the full analyst report on SNE

Read the full analyst report on PC