Consumer Electronics Industry Sales To Jump 6.1 Percent To $171 Billion In 2008

DTV, Gaming and Portable Navigation Emerge As Key Drivers for Growth [The following is a release from the Consumer Electronics Association]

January 9, 2008

The consumer electronics industry is projected to post a healthy 6.1 percent increase in revenues in 2008, according to the semi-annual industry forecast released by the Consumer Electronics Association (CEA®). CEA President and CEO Gary Shapiro announced the figures today in his opening remarks at the 2008 International CES®, the world's largest consumer technology tradeshow. "CE industry sales have exceeded our expectations once again, despite a challenging domestic economic situation," said Shapiro. "It's clear that the spirit of innovation will continue to sustain and grow our industry. Indeed, we are seeing this innovation on display here at the 2008 International CES. This is especially healthy growth when compared to that of any other industry." Overall shipment revenues are forecast to top $171 billion in 2008, yielding a growth rate of 6.1 percent. CEA also released its estimate of final shipment revenues for 2007, which totaled $161 billion, up 8.2 percent over 2006. The overall projection for the rate of 2008 growth, although slightly lower than 2007 growth, is closer to the long-term historical average for the industry and is still well above expected 2008 growth levels for many other industry sectors, including housing and new vehicles. TV displays continue to be the largest contributor to the CE industry bottom line, representing roughly 16 percent of overall CE shipment dollars. Shipments of displays are expected to grow 13 percent to more than $29 billion. Sales of next generation DVD players will take off in 2008, as prices decline and consumers continue to seek out high quality home theater products. CEA forecasts unit shipments will grow 173 percent to 2.8 million. "Consumers remain focused on upgrading their home theater systems," noted Steve Koenig, CEA's senior manager of industry analysis. "Already, digital televisions are present in more than 50 percent of U.S. households. 2008 will continue to feature robust growth in this category." The gaming category continues to set records in terms of revenue. Fueled by the availability of three next generation consoles, gaming hardware alone is estimated to have grown 50 percent to $6.6 billion in 2007. Riding the wave of several successful title launches, gaming software is expected to drive growth in 2008. CEA expects software sales to grow 26 percent to $11.5 billion this year. Total shipment revenues in the mobile video and navigation category will nearly double this year to more than $3.1 billion thanks to sky-rocketing sales of portable navigation devices (PNDs). In particular, CEA expects rapid revenue growth of over 74 percent for devices that include traffic and data functionality. U.S. Consumer Electronics Sales and Forecasts 2003-2008 (January 2008) is published twice per year, in January and July. It was designed and formulated by CEA, the most comprehensive source of sales data, forecasts, consumer research and historical trends for the consumer electronics industry. Please cite any information to the Consumer Electronics Association (CEA®). The complete report is available free to CEA member companies. Non-members may purchase the study for $999 at http://www.ebrain.org.

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