iPads and Kindles are more in children’s Christmas list than traditional toys this year, it has been revealed. The managing director of equity research at Needham and Company, an investment banking firm, claimed that the toymakers cannot compete against tech groups that make such engaging entertainment, the Daily Mail reported.
Some analysts are said to be lowering predictions for end-of-year toy sales, estimated at $1.41billion for Hasbro and $3.29 for Mattel, after sales to date for the year are down on last year.
Mattel reported in April that its first-quarter profit dropped 53%, pulled down by costs tied to an acquisition and lower sales for Barbie and Hot Wheels. Analysts have claimed that the problem faced by toymakers is that children as young as three are taking more of an interest in the latest gadgets and therefore spending less time with toys.
They added that the interest is generated in kids by the likelihood that many can expect to get their hands on their parents’ older iPad and Kindle models as they upgrade this Christmas
Meanwhile, the Toy Retailers Association disproved the claim that traditional presents are in decline, and said that toys popular in the 1980s are on this year’s list of ‘must-have’ presents.