How Long to Wait for Latest Gizmo

Holding out will get you a deal on consumer electronics but if you wait too long your sleek new cellphone or next-generation TV won't only be cheap--it'll be obsolete.

As a "late" adopter of an Apple iPhone, it paid to wait just 10 weeks after its launch to let the hype settle and watch the price drop $200 (although early adopters were offered a $100 store credit after they complained to Apple).

Kelli B. Grant writes for the WSJ:

"Sure, there's some intangible value to being the first kid on the block to have that new toy," says Denny Arar, senior editor with PC World magazine. "But -- and I can't think of a single product where this isn't true -- the first generation is bound to be buggy. Plus, you have to realize that the price is going to drop eventually."

Generally, six months after a product is released is a safe bet. Tech products have a lifecycle of up to a year before the "something-cooler-is-on-the-horizon price drop" kicks in, says Ms. Arar. Plus, most of the bugs associated with the launch of a new technology will have been fixed at that point.

Another suggestion: If possible, wait until January to do your gadget shopping, advises Jerry Grossman, editorial director for Demystifying Digital, an electronics education site. Post-holiday sales abound and prices fall even further as the latest hot gadgets are unveiled that month at major tech shows like the International Consumer Electronics Show and Macworld.

Beyond those basic rules of thumb, how long you should wait depends on the gadget you're eyeing:

• Computers: Wait longer than a year -- even a discounted, year-old "obsolete" model is still pretty darn fantastic, says Brian Cooley, editor at large for electronics review site CNET.
• Digital Cameras: Wait one year and buy a discounted older model, without missing more than a new design and minor feature(s).
• High-Definition Video: Wait until the dust settles between the HD-DVD and Blu-ray battle.
• Software: Wait one month when you can expect the first free patches and updates to be available.
• Televisions: Wait one year -- prices annually drop 25% to 30%
• Video Game Systems: Wait for cutting-edge video games to be released

Want to know the best days of the week to buy other items? See Kelli B. Grant's "The Cheapest Days to Buy Certain Items" at Yahoo Finance.

Source: Grant, Kelli B. "When to Hold Off on Latest Gadget." Wall Street Journal, September 23, 2007