Monday, January 11, 2010

What NOT to Buy in 2010

EDITED BY NIKKI WALLER of The Wall Street Journal

As we roll into 2010, expect to see more revolutionary products supplanting old mainstays. As a result, some products seem poised for a dip in sales, which could be a prelude to obsolescence.

Here's what not to put in your shopping cart this year:

DVDs: The days of going to a video store to rent a movie are at an end, and DVD purchases could turn cold, too. On average, DVDs sell for at least $20 each. That's pricier than signing up for Netflix or renting movies from cable providers' on-demand channels.

Home phone service: Home landlines could go the way of the rotary phone, especially as cellphone companies compete for greater market share and alternatives to the landline grow. One example: Skype, which uses the Internet to make calls, hold video conferences and send instant messages -- all for free so long as you're communicating with other Skype users.

External hard drives: These hard drives are one option for people who need more digital space to hold their many songs, movies and photos. But a simpler option may be found in online backup services, like Carbonite.com or Mozy.com, which allow users to back up data over the Internet. These services are more expensive than purchasing an external hard drive, which typically starts at around $70. At Carbonite.com, a one-year subscription starts at $54.95, and at Mozy.com monthly subscription costs total $54.45 for a year.

Smartphone also-rans: In the past few years, several smartphones hit the market with similar features to the iPhone and BlackBerry, but those two phones still command most market share and are expected to stay at the top. This means developers are less likely to create applications and other products that cater to other phones.

Compact digital cameras: Single-lens reflex (SLR) cameras, which produce pictures more accurately than super-tiny compact models, are growing in popularity. They're also pricier. For example, Canon's digital compact cameras start at $110, while the SLRs start at $570.

CDs: Thanks to iTunes, CDs aren't coming back, and record stores are feeling the pinch. Most Virgin Megastores in the U.S. have shut down, following declines in sales and revenues, while other national retailers have likewise shuttered.

New college textbooks: Used textbooks cost up to 70% to 90% less than new ones, and you can find them on Web sites such as CheapestTextbooks.com, Amazon.com and Booksprice.com. Sites like CourseSmart.com sell subscriptions to digital copies of more than 7,000 textbooks. TextbookMedia.com allows students to download textbooks for free. You can also rent textbooks on Chegg.com.

Gas-guzzling cars: Skyrocketing gasoline prices dominated headlines during most of the past decade, and they remain volatile. According to the Department of Energy, the most efficient cars include the Honda Civic hybrid, which gets 40 miles per gallon in the city and 45 mpg on the highway, Volkswagen's Jetta and Golf, and the Toyota Prius hybrid.

Energy-hogging appliances: Appliances that are Energy Star certified and meet new federal environmental standards may have high price tags, but they help lower heating and cooling bills. You can also get a federal tax credit of up to $1,500 on energy-efficient home upgrades through Dec. 31, 2016.

— AnnaMaria Andriotis of SmartMoney.com

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