Total factory-to-dealer sales of consumer electronics (CE) will surpass $160 billion in 2007 according to new forecasts released today by the Consumer Electronics Association (CEA). The semi-annual U.S. Consumer Electronics Sales and Forecasts, the most comprehensive analysis of the CE marketplace, projects eight percent industry growth in 2007.
“CEA’s mid-year projections show additional growth ahead in the consumer electronics industry,” said CEA President and CEO Gary Shapiro. “Just when we think we’ve reached the limits of our expansion, our industry continues to reach greater and greater heights. We are changing the lives of consumers every day by creating the products and innovations they love. Our latest industry projections demonstrate that consumers simply cannot live without their consumer electronics.”
The mid-year edition of the report contains two notable features. The first is a record participation rate by companies that supply CEA with their industry sales projections. Over 60 companies contributed to this latest report, enhancing the accuracy of the forecast and making this the greatest pool of participants in over two decades.
The second feature is expanded coverage of existing product categories such as high-definition (HD) televisions, personal computers and cellular phones as well as the addition of new categories. Among the new product categories are set-top boxes, next generation DVD players, VoIP adapters, digital photo frames, smartphones and MP3 player speaker docks.Detailed information regarding these new and expanded product categories is available in the full report.
“Our mission is to grow the consumer electronics industry, and expanding our coverage and participation makes this forecast report the most comprehensive and accurate of all data reports in the CE industry. We are continually looking for ways to make our data more representative of the industry and more valuable to our audiences,” said CEA Senior Manager of Industry Analysis Steve Koenig.
Accessories have emerged as a powerful booster to overall CE sales as consumers seek to enhance their CE experience. CEA predicts accessories sales will reach almost nine billion dollars with over 317 million accessories units shipped in 2007. The full report features a break down of accessories shipments in specific product categories, including audio/video, digital imaging, wireless, video games and personal computer products.
The single largest contributor in terms of dollar sales continues to be display technologies. Forecasted to reach shipment totals of $26 billion for 2007, the display category – including the category’s anchor, flat screen digital televisions – continues to grow as consumers embrace digital technologies with over 30 million digital televisions projected to ship by year’s end.
The portable communications market will also grow substantially in 2007. CEA is projecting that over $20 billion will be spent on portable devices, an increase of 12 percent over 2006. This is in part due to consumer demand for anytime, anywhere devices that enable entertainment content and business applications on the go. Smartphones, including the Apple iPhone, typify consumer demand for converged wireless capabilities including e-mail, internet browsing, instant messaging as well as audio and video entertainment.