CE to Be $206 Billion Industry in 2012 on Strong Tablet Sales, CEA Says
Despite a downturn in consumer tech spending sentiment for July, the CE industry will see stronger than anticipated growth in 2012 exceeding $200 billion in sales for the first time, according to CEA’s semi-annual industry forecast released Tuesday. The CE industry will grow an estimated 5.9 percent in 2012, CEA said, two points higher than January projections, and sales are expected to surpass $206 billion for the year. Growth is expected to continue into 2013, at 4.5 percent, to reach $215.8 billion, CEA said.
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Consumers’ desire for connected devices is “pushing projected revenues higher than originally anticipated,” said CEA President Gary Shapiro. Tablets are leading the way in CE this year, with growth of 83 percent expected, according to the most recent forecast, on shipments totaling $29.1 billion. That’s $10.8 billion higher than January projections, CEA said. “Tablets are the fastest-growing product category in the history of the CE industry,” said Steve Koenig, CEA director-industry analysis. Future sales growth will be fueled by more products hitting the market offering consumers choices in size, price, operating systems and app ecosystems, he said.
Smartphone sales will also have continued growth this year and will remain the “primary revenue driver” for the industry, CEA said. Shipment revenue for smartphones is forecast to reach $33.7 billion this year, with more than 108 million units shipping to dealers, an increase of 24 percent from 2011, CEA said. U.S. smartphone penetration has passed 50 percent, Koenig noted, leading to a slowdown in sales of dedicated devices, as consumers “seek singular devices that can perform multiple functions.” The trend will continue through next year, he said.
Laptop sales, “led by the introduction of Ultrabooks,” will continue to grow this year, CEA said, driven by consumer demand for mobile computing solutions. Overall laptop sales to dealers are expected to hit $14.9 billion, on shipments of 21.3 million units to dealers, CEA said.
Despite the “ongoing decline in overall TV sales,” sales of “innovative” digital displays continue to rise and remain “critical to the industry’s bottom line,” CEA said. Sales of connected TVs are projected to pass 10 million units this year, up 56 percent for the year, with shipments forecast to total $9 billion, a 20 percent bump year over year, it said. As 3D displays continue to be offered as a feature in higher end TVs, they, too, are growing, CEA said, with unit 3D TV sales in 2012 expected to reach 5.6 million, up 104 percent over 2011. 3D TV shipment revenues are forecast to jump 75 percent to more than $7 billion this year, CEA said.
In the vehicle market, consumer interest in integrating mobile devices into the car has boosted demand for in-vehicle electronics, CEA said, and overall sales for factory-installed systems are expected to grow $1.6 billion in 2012. The integration of mobile devices is also helping aftermarket sales, with unit growth for head units equipped with Internet radio control or apps projected to grow by double digits this year, CEA said.