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Displays, DVDs drive growth of CE sales

Posted: 17 Aug 2006 ?? ?Print Version ?Bookmark and Share

Keywords:Consumer Electronics Association? Displays? DVD? consumer electronics? XX?

The total consumer electronics factory-to-dealer sales is forecasted to reach $140 billion this year, up by 8 percent over 2005, according to the U.S. Consumer Electronics Sales and Forecasts Report from the Consumer Electronics Association (CEA). The growth projection slightly exceeded the $135.4 billion the CEA forecasted in January. For 2005, CE sales totaled $128 billion, up 11 percent over 2004.

Display technologies continue to be the front runner in the CE industry with revenue expected to grow from $19 billion in 2005 to over $22 billion in 2006.

"Replacement and upgrade purchases continue to drive the display market while prices continue to fall," said CEA director of industry analysis Sean Wargo. "As consumers prepare for the transition to digital television, we will see more of the shipment volumes move to digital displays as analog sets' days is increasingly numbered."

The association projects the DVD market to resurge as DVD recorders and high-definition DVD become widely available. Declining DVD recorder prices will help propel shipments to over seven million units this year, while high resolution DVD players in Blu-ray and HD-DVD formats should exceed one million units in 2007.

Wargo added that MP3 player sales continue to be strong, while video game sales should increase as Sony's Playstation and Nintendo's Wii emerge later this year. Total gaming shipments, including both hardware and software, will reach $12.5 billion this year and grow another 16 percent in 2007, the report said.

- Spencer Chin
EE Times

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