October Audio Revenues Top $1 Billion

Factory-to-dealer sales of audio equipment posted strong gains in October, rising by 8 percent over last October's sales figures, and eclipsing the $1 billion mark for the first time since 1995. Sales growth occurred in almost all segments of the audio market, with the exception of portable audio, which remained consistent with last year's levels.Sales of aftermarket autosound products continued their yearlong upward trend, soaring by 30 percent over last October and topping $211 million. As has been the case all year, in-dash CD players, power amps and car speakers were the strongest performers in this category, with each product showing significant growth. The strong October sales brought year-to-date revenues from aftermarket autosound products to nearly $1.9 billion, up 13 percent from the first ten months of 1998.Sales of home audio separates also grew in October, increasing by 2 percent over last October, and posting revenues of $166 million. Throughout the year, a strong contributor to the growth in this category has been sales of receivers utilizing Dolby Digital 5.1 channel surround sound technology, and October was no exception. Sales of this type of receiver topped $41 million in the month; increasing by 57 percent over last October, and bringing the year-to-date total 80 percent ahead of the first ten months of 1998. Also contributing to growth in the category were sales of speakers, which posted an impressive 40 percent increase.Also posting gains in October were audio systems. Riding the coattails of the segment's cornerstone product, the compact system, total sales of audio systems grew by 9 percent in the month, to $292 million. Sales of compact systems alone increased by 14 percent, and have accounted for $1.34 billion in revenues this year. This represents an incredible 20 percent of the entire $6.6 billion generated during the year in the entire audio market.

Source: CEA (Consumer Electronics Association)