Inflation hits appetite for gadgets?

July 03, 2008

As inflation drives up the cost of living, technology analysts are watching for signs of slowing consumer spending on 'lifestyle' items. On June 27, Sony Ericsson cited moderating demand for mid to high-end mobile phones as a factor in its need to issue a profit warning for the second quarter. So are rising fuel, food and mortgage costs beginning to eat into people's budget for gadgets? Reuters Technology Correspondent Matt Cowan reports.