Sony, Best Buy see better U.S. holiday sales

By Franklin Paul

NEW YORK (Reuters) - U.S. consumer electronics sales during the upcoming Christmas shopping season are likely to outpace last year's historically weak levels, but don't expect consumers to abandon their frugal ways, executives from Sony Corp (6758.T) and Best Buy Inc (BBY.N) said on Wednesday.

It should not be hard to beat last year's holiday shopping season, the worst in nearly 40 years as the economic downturn led consumers to rethink shopping choices.

But Stan Glasgow, chief of Sony Corp's $12 billion electronics unit, is cautiously optimistic, citing improved demand for flat screen televisions, video cameras and portable computers. Still, he admits many U.S. shoppers may be focused on their next payday and not on Blu ray players.

"I think it can be better than last holiday season; as a best optimistic case it can (show) we are beginning to move positively in this country," said Glasgow, president and chief operating officer of Sony Electronics, at a press briefing.

"I find it hard though, when you have 9.4 percent unemployment. It's not a comfortable time for people to spend money. Some things need to get resolved before consumers truly open up there wallets again," he added, citing current debates about the U.S. health care system and taxes.

His comments about shoppers' sentiment came a week after ABC News reported its U.S. consumer confidence index rose during the first week of August as many Americans became less worried about their personal finances, although the index remains in deeply negative territory.

BEST BUY: BETTER SECOND HALF

Mike Vitelli, executive vice president for customer operating groups at top electronics retailer Best Buy said the company expects sales in the second half of the year to be better than the same period last year.

"We see strength in a variety of areas throughout our store," he said, citing products such as mobile phones. "We are going at it with a cautiously positive attitude as well.

"We are planning that this year is going to better than last year (during the holidays)," he said at the press briefing. "That is the way our guidance was laid out, and we are still heading toward that as our objective."

Both companies are working on ways to tailor their gadgets to the needs of customers, in order to differentiate from the flood of TVs, cameras and other electronics for sale at myriad retailers, including giants such as Wal-Mart Stores (WMT.N) .

Sony and Best Buy on Tuesday unveiled a collaborative line of audio products, Altus, that will be sold on Sony's website, in Best Buy stores and through other retailers.

The wireless music systems, speakers and home theater products include two docking systems for Apple Inc's (AAPL.O) iPods and iPhones. The products, which also include systems that will stream music wirelessly from computers, range in price from about $200 to $800.

The move comes as electronics makers seek to woo shoppers throughout the holiday season -- not just on "Black Friday", the day after Thanksgiving, when prices typically are slashed and bargain-hungry consumers fill stores.

"Will it be that much better this Black Friday? I'm not so sure," said Mike Fasulo, Sony Electronics' chief marketing officer. "The values in the marketplace today are very compelling for consumers...and very good values in the market leading into the fall.

(Reporting by Franklin Paul, additional reporting by Jessica Wohl in Chicago, editing by Gerald E. McCormick, editing by Leslie Gevirtz)