Canon Index indicates falling prices is a win for consumers

By Martin Vedris

SYDNEY: The Canon Digital Lifestyle Index (CDLI) reveals that the average prices of digital technologies continue to fall. While it means less margin for suppliers and retailers, the winners are the consumers, who have never had it so good.

The latest CDLI shows that average prices of products continue to drop in nearly all digital product categories measured by the CDLI. And there is a corresponding increase in unit sales in key categories.

For example, as average plasma TV prices fell by 26 per cent (down $668 to $1,871) unit sales increased by 38 per cent. Unit sales of digital still cameras increased by 27per cent (from 1H 2007 to 1H 2008) as prices reduced by 23 per cent (down $85 to $279).

The CDLI report shows that average selling prices fell in 10 of the 11 product categories reported. Prices were down around 11 per cent on average from Q2 in 2007 to the same period in 2008.

The result means more consumers can afford to buy these technologies, and sales are correspondingly on the increase.

“In digital imaging, increased affordability means that consumers have access to technology that was previously out of reach, which is opening up a whole new world of creative possibilities for them,” said Darren Ryan, Canon Australia assistant general manager – Marketing, Consumer Imaging Products Group.

“Australian’s are renowned early adopters of technology and the CDLI reflects the unprecedented importance of digital imaging in peoples’ lives,” he said.

Canon Australia is seeing the effects of this in its digital imaging business.

“We’re seeing most households now own a digital compact camera and we’re now seeing people upgrading to more advanced models,” said Canon Australia National PR manager Andrew Giles.

“We know from research that 43 per cent of people looking for a digital camera are considering purchasing a digital SLR camera for more creative control … and increased affordability means that more people can now buy a digital SLR,” Giles said.

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