Wall Street's Woes Will Breed Cheaper Gadgets

Luxury brands will drop prices; digital media apt to boom in downturn
By Ambreen Ali,  Newser User
Posted Oct 7, 2008 7:16 PM CDT
Luxury brand manufacturers will probably make cheaper products during the downturn, Biggs writes.   (AP Photo/Chitose Suzuki)
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(Newser) – Wall Street's current tremors will be felt in Silicon Valley for years, "worst case, the next decade," John Biggs writes in TechCrunch, and that could be good news for gadget freaks. Though pinched consumers probably won't "be able to stomach even mild extravagances," luxury brands—Apple included—will likely slash prices and make cheaper products.

Entertainment does well in tough times, explains Biggs, and the cheap cost of producing digital media will bury physical media, giving music and movie selection a boost "as entertainment companies give up and begin partnering with anyone who can supply eyeballs." Though he says he is "obviously talking out of" his you-know-what, Biggs predicts a "green" bubble will bolster tech companies out of the gloom. At least, that is, “for a few years.”