Holiday consumer spending forecast looks good for Apple

This holiday season should be a good one for Apple. Spending on consumer electronics gifts will reach historic highs, despite an overall decline in gift spending, according to new research released today by the Consumer Electronics Association (http://www.CE.org/). And it’s good news all around for Apple.

Consumer electronics will once again be the “hottest” gifts, both to give and to receive, this holiday season. Overall, consumers will spend US$750 on holiday gifts, down 2%t from last year. They will, however, spend more on CE gifts than ever before. Consumers will spend $232 on CE gifts, up 5% from last year and the highest level since CEA began tracking holiday spending.

Nearly a third of consumers’ total gift budgets will be allocated to CE. When it comes to spending, nearly half will buy a CE gift for children on their list, two in five will buy a CE gift for their spouse/significant other and 29% will buy CE for themselves.

“Giving electronics as a holiday gift, either to a loved one or to yourself, is more popular than ever,” says Steve Koenig, CEA’s director of industry analysis. “Not only are three in four adults planning to give CE as a gift this year, but more consumers want electronics as a gift for themselves, demonstrating that electronics will be the must-have gifts of the season.”

Three of the top five, and four of the top ten, items on adults overall holiday gift wish list are electronics. Notebook/laptop computers and Apple’s iPad ranked second and third on the list respectively, trailing only peace and happiness. eReaders and video game systems ranked fifth and ninth respectively. Among adults’ holiday CE wish lists, notebooks, the iPad and eReaders topped the list.

Overall, consumers will each spend an average of $1,412 this holiday on everything from gifts and decorations to travel and food. That’s up 3% from last year, but still below recent historical levels as consumers remain guarded, says the CEA. Nearly seven out of 10 consumers say they are adjusting holiday spending due to economic concerns, with a third reducing expenditures for reasons related to unemployment.

“While the recession officially ended a year and half ago, consumers remain very cautious this holiday,” says Shawn DuBravac, CEA’s chief economist and director of research. “Worries remain over the economy and employment picture, but there is optimism. Consumers will spend more this holiday than last, with one in five planning to increase their holiday budget compared to last year.”