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iSuppli sees mild recovery for CE market in 2010

Posted: 01 Feb 2010 ?? ?Print Version ?Bookmark and Share

Keywords:consumer electronics? CE market? LCD?

The global consumer electronics market is expected to achieve a mild recovery in 2010, with revenue expanding by 1.6 percent after a 6.7 percent drop in 2009, reports iSuppli Corp. This slight increase is coming from improving sales of LCD TVs, digital STBs and appliances.

Worldwide CE OEM revenue will rise to $317.3 billion in 2010, up from $312.3 billion in 2009. While a less than 2 percent increase represents only marginal revenue growth, it marks a welcome turnaround after a dismal 2009. The 6.7 percent fall in CE OEM revenue in 2009 represented the market�s first annual decline since the 1.6 decrease during the dot-com bust year of 2001.

"Sales of CE rebounded in 2H 09, setting the stage for renewed growth in 2010 and beyond," observed Jordan Selburn, principal analyst, iSuppli. "One major bright spot for CE in 2009 was the LCD TV segment, which achieved 4.2 percent revenue growth due to incentives in China and the increasing sales of LED-backlit sets. The LCD TV market is set to extend its winning streak in 2010 as stabilization in the global economy and declining prices prompt consumers to keep buying."

Global LCD TV OEM revenue in 2010 will rise to $75.5 billion, up 5 percent or $3.6 billion, from $71.95 billion in 2009, the largest dollar increase of any CE segment for the year.

The next biggest growth area in terms of dollars will be digital STBs, which will see OEM revenue rise to $18.2 billion in 2010, up $1.9 billionor 11.6 percentfrom $16.3 billion in 2009.

"Strong sales of premium boxes will propel revenue growth in the digital STB market," Selburn said. "Consumers are snapping up premium STBs that support advanced features like HD and digital video recording."

Sales are particularly strong in Asia Pacific due to the continued expansion of digital infrastructure, giving increasingly wide swathes of the population access to pay-TV content over cable, satellite and the Internet.

Global OEM revenue from appliances such as washing machines, ovens and refrigerators is expected to rise to $76.99 billion in 2010, up 2.1 percent or $1.9 billion, from $75.4 billion in 2009, making it the third largest dollar growth area for the year.

"Increases in sales are being driven by emerging economies, where more households are buying basic appliances, such as washing machines," Selburn noted. "After a 4.6 percent decline in 2009, this area will rebound in 2010 as global governments continue their stimulus efforts."

Other areas expected to experience revenue growth in 2010 include DVD video players, PMP/MP3 players, digital photo frames and handheld video games.

In stark contrast to the LCD TV market, global OEM revenue from plasma TV is set to contract by $3 billion in 2010. Plasma TV revenue is set to decline to $9.2 billion in 2010, down 24.9 percent from $12.2 billion in 2009.

"Continued cost reductions are making LCD panels more cost competitive, hurting sales of plasma sets," Selburn said. "Furthermore, some of the leading suppliers no longer foresee plasma generating sufficient sales growth to continue investing in the technology."

Meanwhile, CRT TV revenue is set drop by $2.5 billion for the year as consumers continue to favor FPDs.

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