Consumers still buying technology products
July 20, 2009
Consumers continue to buy technology products to improve their lives, although the consumer electronics (CE) industry will see overall shipment revenues decline in 2009, according to data released by the Consumer Electronics Association (CEA). The semi-annual US Consumer Electronics Sales and Forecast shows that industry revenues will contract to $165 billion in 2009 but grow slightly in 2010.
The consumer electronics industry will see shipment revenues fall 7.7 per cent, to $165 billion this year, the first decline since 2001. While consumer demand for CE products remains high, several market forces are contributing to lower revenues, including lower consumer spending, price declines and compositional shifts in key product categories. As consumer confidence rebuilds, industry revenues will grow, albeit at a pace of less than one per cent in 2010. CEA's forecast projects industry revenues will bottom out by the second half of 2009, although many risk factors remain causing industry growth to remain muted.