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Daily News

CE Holiday Revenues Forecast to Increase
Oct 18, 2005
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Revenues from sales of consumer electronics (CE) are expected to increase 9 percent during the upcoming holiday shopping season, according to a survey from the Consumer Electronics Association (CEA).

Based on the survey, CEA is forecasting that overall holiday spending will increase 14 percent per average household (from U.S. $1,254 to $1,430) compared to 2004, factoring in gifts, decorations, food, travel and other assorted holiday expenses.

CEA's Annual Holiday Spending Survey tracks the consumer electronics devices consumers intend to give as gifts, as well as those they hope to receive. MP3 players topped both lists this year displacing digital cameras from the gift list and plasma TVs from the wish list. According to the 1,000 randomly selected U.S. adults CEA interviewed by phone, consumer interest in buying a portable MP3 player increased to 28 percent from 20 percent in 2004. Revenues from MP3 player sales have increase 105 percent so far this year.

CEA also surveyed CEA|CNET Tech First Panel participants for the holiday study in order to determine the holiday gifting intentions of technology early adopters. The MP3 player topped the list, as 57 percent said they are likely to purchase an MP3 player this season as a gift. Other top early adopter gift-giving items included a digital camera, internal PC upgrade, video game system and home networking devices.

Following the MP3 player, the full wish list for survey respondents included, in order of preference: plasma TVs, digital cameras, laptop PCs, big-screen TVs, desktop PCs, video game systems, high-definition TVs, DVD recorders, and home theater speakers or systems. The gift-giving list included: portable MP3 players, digital cameras, video game systems, cordless phones, DVD players, portable CD players, game peripherals, DVD recorders, cell phones, and laptop PCs.

CEA's holiday survey also found that consumer interest in purchasing gift certificates increased to 32 percent -- up two points from last year.

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