The US consumer electronics industry will continue to defy the credit squeeze and any subsequent downturn in 2008 by totting up 6.1 percent sales growth – according to the Consumer Electronics Association. The forecast also includes warning signs that the sector needs to find a new wave of innovative mass-market products if its massive growth this decade is to continue.
The Consumer Electronics Association projects US sales of $171.6bn this year, against an estimated $161.6bn for 2007. Ongoing performance will not be totally immune to the fall-out from the US sub-prime mortgage crisis, said CEA economist Shawn DuBravac. He expects a “soft” first-half of the year followed by a second-half recovery.
Gary Shapiro, Chairman and CEO of the Consumer Electronics Association
Opening his organization’s CES 2008 trade show in Las Vegas, Gary Shapiro, Chairman and CEO of the CEA said, “This growth rate is absolutely terrific compared to the forecast of any other industry. Even with a very uncertain economy, consumers continue to demand our products. Indeed, today the average American home contains 25 consumer electronics products.”
The US regulators are set to switch off its analogue TV signal in February 2009 and therefore unit sales of digital/HDTV displays are expected to continue rising but accompanied by strong declines in price and margin. Sean DuBravac, CEA’s economist said that average display prices fell by 39 percent in the 2003-07 period.
Dubravac maintains that short-term growth is likely to be driven by products and services that make it easier for consumers to distribute digital content around the home; wireless connectivity between devices; and a move to higher performance products.