Early holiday sales are here, but so are bills.
The holidays have never been merciful when it comes to balancing everyday expenses, so juggling your necessities during a busy (and expensive) shopping season can be tough. There’s a glimpse of that in CNET’s latest holiday survey. This time last year, holiday spending for tech products and services was higher, with the average US adult spending $931. Now, that budget has shrunk to $808, a $123 dip from last year’s survey findings.
But there have been so many new releases this year, like Apple’s AirPods 5, the highly anticipated Legend of Zelda-themed Switch 2 console, and even Apple’s first foldable phone, the iPhone Duo. We can’t all comfortably fit new devices into smaller holiday budgets. The real question is, who’s to blame for me saying, “Bah humbug!” when I start my holiday shopping — the economy or tech brands?
What’s causing lower holiday tech budgets this year?
Let’s be real, we’re juggling a lot financially. There are higher prices on everything from everyday goods to gas and utilities. Covering necessary expenses doesn’t leave much room to pay for new personal tech that costs hundreds, even thousands, for some devices like the iPhone Duo or the iPhone 18 Pro Max.
But why are US adults spending less on tech when so many new devices were released this year? CNET Senior Editor Adam Oram, an expert deal hunter, says tech is becoming unaffordable, and we’re dealing with higher everyday living costs. We’re having to be more mindful about how we spend our money — and some new tech simply isn’t worth it.
Think about the rising cost of tech products, but the lack of innovation. For example, if you have the iPhone 17 Pro, there aren’t many differences from the iPhone 18 Pro that justify the cost to upgrade. What’s more, even if you’re considering existing tech products, you’re seeing price increases due to the RAM shortage, which has driven up hardware and service costs around the world.
“That means people are perhaps keeping their phone for an extra year or persevering with a laptop for a little longer, rather than jumping on the next shiny thing,” Oram says. It also could mean nonessential tech purchases fall into the luxury bucket, which may have less cash in it than before. And since many paychecks aren’t stretching as far, that doesn’t leave much discretionary money to splurge on nonessential items, such as upgrading your smartphone.
Is it still worth shopping for tech right now?
The answer depends. If your holiday budget is tighter this year, you may be hoping that sales can help you buy the tech you want. However, don’t expect retailers to slash tech prices as much this year, Oram says. For all the reasons listed above, don’t expect big savings, like half off the original price, during early holiday sales, especially for newer device models.
“In previous years, holiday sales have made for a great time to upgrade big-ticket tech items, but with rising component costs, these deals might not be as staggering this year as in the past,” he says. “That said, if you have a busted TV, laptop or tablet that needs replacing, those items should still top your list as they rarely go on sale for less than around the holidays.”
You may still be able to find deals at different retailers throughout the month of October, depending on the brand, retailer and model of the device you’re looking for. Oram adds that you can expect plenty of deals on items that will likely fall into most people’s “nice-to-have” list, such as smart home and kitchen gadgets. It’s also a good time to stock up on presents and spread the overall cost over the next few months rather than shopping at the last minute.
On the other hand, if you don’t need to replace a device right away, it may be worthwhile to just wait a few more months.
“Waiting for the hype around new product launches to die down can lead to scoring a better deal,” Oram says, “especially for things like phones, where carriers begin incentivizing upgrades by offering solid discounts after the initial buzz.”
For now, Oram doesn’t expect prices to drop significantly on tech, so think about whether you need to upgrade versus just wanting to. If you’re planning to upgrade, cover the needs first, and the wants after, if you can afford to.
Dashia Milden
