By Kymberly Martin

The consumer electronics industry needs new product, not just any new product and not cheap product but premium new product, according to Harvey Norman chairman, Gerry Harvey.

Following the release of the retailers disappointing Q3 results, Harvey described them as “very ordinary” with profits down 20 per cent.

“I was hoping the results would be better or even the same as the previous quarter, but it’s the technology category that is pulling us down.”

The launch of Windows 8 and the new devices that are rolling out now he hopes will make a difference to technology sales over the next 12 months.
Harvey is also looking for growth with the new UD Full HD TVs arriving on shop floors. “We sold five of the new LG models in one day in Singapore. If one person in 20 bought one here it would be enough to get our industry going again.”

Although he said most retailers would be severely limited in how many big TVs they could sell. “Few retailers have the space to stock them and if manufacturers want to sell these I would expect our stores are the logical place for them.”

Harvey said the industry must have new technology as there is no money in the bottom end. “You have to position yourself not to be there if you can help it because there is no future in that place.” Harvey reckons the biggest strength Harvey Norman has is a strong presence in middle to upper brands.

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