Dull holidays for electronics, says iSuplli

Due to product delays, competing standards and inventory shortages, consumer electronics cannot rely on a single killer application to drive holiday spending this year, according iSuppli Corp.

Apple Computer Inc.'s Internet Television (iTV), which promises the ability to view video content from iTunes and other sources via Wi-Fi link to PCs, was originally expected to be a large driver for holiday electronics spending, iSuppli said. But Apple has pushed out the launch of iTV until January, the market research firm noted.

Other factors contributing to a "dull" holiday season include competing next generation DVD standards and repeated push outs of Sony Electronics Corp.'s PlayStation 3 video game console, according to Chris Crotty, an iSuppli senior analyst for the consumer electronics at market.

Lack of a killer holiday app is one thing contributing to an overall slowdown in consumer electronics product growth for 2006, Crotty said. He expects factory equipment revenue to rise 2.4 percent to reach $302.3 billion this year, slowing growth compared to 11.6 percent and 13 percent growth in 2004 and 2005, respectively.

Despite the lack of a compelling must have product, Crotty told EE Times recently that consumers—especially U.S. consumers—would like spend money on consumer electronics products during the holiday season. Last week, the Consumer Electronics Association forecast that holiday consumer electronics spending in the United States would increase 21 percent this year, reaching $21 billion.

- Dylan McGrath
EE Times