CEA Predicts Revenue Drop
The Consumer Electronics Association last week predicted that the CE industry will experience a drop in revenues for the first time in eight years. However, the group predicted that gains will return in 2010.
CEA's U.S. Consumer Electronics Sales and Forecast, released Friday, projected revenues from CE shipments this year at $165 billion, a drop of 7.7 percent. The forecast also sees revenues bottoming out in the second half of this year, before rebounding next year.
“The CE industry is not impervious to the economic downturn but remains resilient compared to other industries,” CEA President and CEO Gary Shapiro said as part of the release of the forecast. “Through innovation and global access to consumers and open markets, technology companies will restore economic growth and prosperity. American consumers continue to purchase CE products despite cutting back in many areas, showing that consumer electronics are vital to everyday life in this country.”
The forecast also saw LCD revenues rising 8 percent this year, and Blu-ray Disc shipments jumping 112 percent. Smartphone revenues were also shown rising slightly.
“Consumers continue to buy CE products at high rates, showing that CE is a must-have even during the darkest of economic times,” Steve Koenig, CEA director of industry analysis, said as part of the release. “Notably, consumers are buying CE products that fit today’s budget, like mid-sized displays, netbooks and private label products. Some categories, such as digital cameras, Mp3 players and video game consoles, have reached maturation as most American homes now include such devices.”
For more on the study, visit mycea.CE.org.