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Black Friday discounts bleed a little red as tough times in retailing call
for sharp cuts on prices at a few big tech shops. These ten top deals
show just how much pressure is riding on holiday sales.
|
Apple |
Apple
is traditionally the stingiest of tech discounters in the gadget
market, and this year will continue that grand tradition. If reports of
Apple's Black Friday specials are true, Macs and iPods will get a
one-day price break of about 10%.
consumers. That position is reflected in the company's tightfisted
pricing stance. Apple's implied theme here is big discounts are for big
losers. But retail partner Costco seems eager to dangle some
marked-down coolness to lure its members. Costco is selling the latest
Apple iPod nano for $129, a 13% discount on the $149 regular price.
| Check Out the Top Recipes
|
its gadgets, Apple's stock attracts an eager crowd willing to pay top
dollar to be part of the action. Costco, however, could use a few
tricks to keep its bargain-hunting customers from finding deals in
Wal-Mart's aisles. In the past month, Wal-Mart shares have doubled the
rise of Costco's stock.
|
HP |
Hewlett-Packard grabbed the top place in PCs from Dell two years ago by jumping on the notebook bandwagon as consumers went shopping for desktop power in
portable devices. Hewlett-Packard hopes to cash in again in an emerging category of hybrid laptops called super netbooks.
The numbers.
One of the most-watched devices in this category is the DM3, a 13-inch,
thin, lightweight notebook with an eight-hour battery life,
four-gigabyte memory and no DVD drive. HEWLETT-PACKARD introduced the
DM3 in July priced at $599. On Friday it will sell on Amazon for $499.
The stock.
Hewlett-Packard branched into IT services last year and hopes to get a
chunk of Cisco's networking market with the pending acquisition of
3Com. But computers are still its biggest business and if hybrid
notebooks are a winning category, Hewlett-Packard could continue to
punish Dell.
|
Garmin |
Garmin was a top destination in the GPS device boom, but navigating the post-boom is proving to be a challenge.
The numbers.
While rivals like Magellan and TomTom have typically offered the
cheaper options in GPS, Garmin is going on the offensive this Friday.
For the first time in a national retail offering, Garmin will break the
$100 barrier with a $99 device. The Garmin Nuvi 205W is being
advertised for $99 at Best Buy this Friday, a 29% discount from the
$140 regular price.
Garmin shares are down 16% in the past month as analysts and investors
absorb the shock of weaker margins on new devices like the Nuvi phone.
Deeper discounts, it seems, aren't exactly the right road toward
alleviating those concerns.
|
Dell |
Dell has been paddling furiously, but still lagging behind and losing business to Hewlett-Packard and Acer, among others.
The numbers.
Dell told analysts last week that it would not build its turnaround on
deep price cuts on PCs. But Dell didn't mention computer monitors.
Black Friday will see another $100 price barrier shattered when Dell's
S2009W 20-inch desktop monitor goes on sale for $99 at Best Buy. That
price is 37% below the monitor's regular mark up of $159.
Dell shares are down 8% from Thursday levels when the company reported
disappointing numbers, thinning margins and eroding market share.
Dell's lousy performance came amid a surprisingly strong period of PC
industry sales giving investors the sense that Dell may be missing out
on a recovery.
|
Palm |
Palm's
Pre phone was expected to spark the revival of a smartphone pioneer.
With a bright touch screen, a slide-out keypad and a new WebOS
operating software, the $200 phone debuted as the best challenger yet
to the Apple iPhone.
The numbers.
After a dismal debut and meager sales, the Palm Pre, sold exclusively
by Sprint, quickly fell in the bargain bin. In three months, the Pre
price fell to $149. Getting into the spirit of Black Friday, Amazon has
begun to offer the Pre for $80, a 46% discount on the previous price of
$149.
past month, Palm shares are still up more than 400% over the past year.
A lot of that appreciation is tied to the value of the Pre as a
contender in the booming smartphone market. But with the Pre prices
falling so fast, it's difficult to stay as hopeful about Palm's
revitalization plan.
|
Western Digital |
Western
Digital drives down prices of external hard drives in its battle with
rival Seagate Technology. The newest crop of hard drives offer twice
the capacity at half the price of last year's models.
The numbers.
As a Black Friday special, Wal-Mart is offering the Western Digital
portable 320 gigabyte external hard drive for $49, a 50% markdown from
the $99 regular price. Seagate's popular FreeAgent 320-gigabyte
external hard drive goes for $80.
Storage has been a popular theme for tech investors this year. With
component costs falling, manufacturers have been able to cut prices
profitably as higher sales offset lower prices. Shares of Western
Digital and Seagate have tripled this year.
|
SanDisk |
SanDisk
is flashing some astounding Black Friday prices on flash memory
devices. Flash drive prices have fallen faster than those of hard
drives. USB thumb drives now pack three times the memory capacity at a third of last year's prices.
The SanDisk 4 gigabyte flash drive is available for $8 at Wal-Mart, a
73% discount from the $30 regular price. In contrast, Target sells a
Lexar 4 gigabyte flash drive for $20.
The stock.
Falling memory prices haven't hurt SanDisk shares. The stock has
doubled this year. A big part of that enthusiasm, however, was due to a
positive resolution to a licensing dispute with Samsung in May.
|
Palm |
The Palm Pixi, the diminutive follow up to the Pre, hit stores last week priced at $100 with a Sprint contract. However, Sprint quickly started the discounts to stem the flow of subscribers from its service.
The numbers.
Amazon is now selling the Palm Pixi for $25, a quarter of the price it
went for when it was introduced Nov. 15. Falling prices on new
smartphone models suggest demand may not be strong.
Palm's Pixi was designed to compete with the $99 Apple 2G iPhone and
lower cost BlackBerries from Research In Motion. Investors have been
concerned the Pixi could cannibalize Pre sales. The timing of Pixi's
arrival also puts it up against Motorola's Droid at Verizon. Palm
investors, who cheered the company's revival, are now looking at a very
crowded market.
|
BlackBerry |
Research In Motion's BlackBerry Curve at Sprint is also battling it out in that market. Nothing in tech gets cut deeper than the price of a
three-year-old phone. The best example was the Motorola Razr. The
ultrathin trendsetter debuted in 2004 with a $600 price tag, but by
2007, it was a promotional freebie.
The numbers. Best Buy, along with desperate partner Sprint, is giving free Curve phones
to people who sign up for two-year service contracts on Black Friday.
The phone was recently advertised for $50 to $200.
The stock.
Sprint's willingness to subsidize customers' phone costs is a bold
strategy to keep and lure customers. Last year, Sprint lost more than 1
million subscribers because of neglected service and rival offers, such
as those for AT&T's iPhone. Fewer contract cancellations will be
seen as a major accomplishment. And while Sprint shares are well below
their one-year high in May, the stock has still doubled this year.
|
BlackBerry |
The numbers.
Amazon has already opened the Web doors with its online Black Friday
special on the Curve 8900. The phone costs 1 cent if you sign up for a
two-year contract with AT&T.
While free Razrs once sounded the game-over bell for Motorola, free
Curves aren't as dismal a warning sign for RIM. Unlike Motorola, RIM
has new models to keep the smartphone momentum going. Even with a 9%
drop in its share price over the past month, RIM is still up nearly 50%
for the year.