Consumer electronics is one of those industries that thrive very well in a healthy economy but are among the first to succumb in a weak one. This is because consumer electronics devices, which are considered among basic necessities during good times, are relegated as overly-luxurious items during bad times.
It's basically all about putting the needs before the wants. People need to make sure that they can afford to put a roof above their heads and food on the table before they can dream of playing the latest hits on their iPod. Unfortunately, this attitude is making life hard for the electronics wholesaler as people are getting less attracted to his goods.
Some people might think that now's a good time for businessmen like the electronics wholesaler to stock up on their goods. In the stock market, you buy stocks when the price is low, hold on to that and then sell when the prices go back up for a nice profit. Electronic devices are not like stocks since they depreciate. It means that if you invest on currently low-priced gadgets, you would want to sell them immediately because, after a couple of months, they will be on their way to obsolescence. Give it a few more months, and people would not want it anymore because they would be anticipating a new model to come out anytime.
This attitude towards consumer electronics sale, which is killing the industry, can be blamed on the industry itself. The people who run this industry, i.e., the makers and dealers, have cultivated the rat race culture among buyers more effectively than any other set of businessmen.
Amazon's Kindle, for example, released the Kindle 2 in February 2009. Before some buyers could stop rubbing their palms together, they released a third device, Kindle DX. Amazon did this because it knew that there would buyers anyway. Cellphones, mp3 players, calculators, TVs, and others all follow the same consumer electronics sale trend.
Even wholesale refurbished electronics are difficult to sell. Despite their ultra-low prices, they are mostly on their way to being obsolete. Some of them are even at that point of obsolescence. This can be a huge turn-off for those who want to be updated all the time.
