NEW YORK (CNN/Money) - Apple's mini iPod is expected to be a hot holiday pick this year but for gift-givers looking for other options, industry watchers say there are plenty of new gadgets that pack in the "must-have" appeal.

"If I tried to sum up the overall picture for the holidays into one word, it's 'convergence,'" said Scott Cameron, editor of Technogadgets.com. "If you're shopping for electronics, the must-have product is a single device that can do a little bit of everything."

"Manufacturers are constantly innovating with existing products and increasing their functionality. One of the 'it' products out there is the new smart phone that combines e-mail, net access, photos, video and audio all into one package," he added.

Or how about a laptop with TV tuners and Tivo-like recording capabilities?

High-tech gadgets are once again expected to dominate the gift-giving season although analysts say holiday sales of consumer electronics may fall short of last year year's stellar performance.

"We expect holiday sales for consumer electronics to be OK. Last year was such as a good year that the big gains maybe aren't sustainable," said Steve Baker, analyst with market research firm NPD Techworld.

According to market research firm NPD Group, consumer electronics sales in the crucial November and December shopping period in 2003 grew 10 percent over the prior year to $16.6 billion. Sales for the same period this year are forecast to grow 5 percent.

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However, shoppers can still expect some nice bargains as a growing variety of choices in everything from flat-screen TVs, digital music players and DVD players have forced retailers to up the ante and aggressively slash prices in order to get a bigger chunk of consumer dollars.

"Flat-screen TVs will be very hot this year. They look better and they cost much less than last year," said Cameron.

He also favors satellite radios. "I think Howard Stern may actually help put the major satellite radio companies on the map." Radio shock jock Howard Stern announced earlier this month that he would be leaving Infinity Broadcasting next year and talking his popular show to Sirius Satellite Radio, which is a subscription-based, commercial-free medium.

Both Cameron and Baker singled out digital cameras and digital music players as popular stocking stuffers. Said Cameron, "The iPod is still the top brand, but look for some of the more than half-dozen new competitors to bite at Apple's popularity over the holidays. Archos, Dell, Sony, Virgin, and others are all selling iPod-a-likes for less money."

Click here to check out this year's must-have gadgets.