December Audio Sales Drive Year-End Total To Four-Year High

Revenues from manufacturer-to-dealer sales of audio products in December 1999 totaled nearly $568 million, a 6.3 percent increase over the previous December. The strong month's sales pushed year-end revenue totals to their highest mark in four years. Total audio shipment revenues in 1999 surpassed the $8 billion mark for the first time since 1995, growing by 2 percent over 1998.The strongest performer in the month was the portable audio category, which grew by 16 percent over last December. Portable audio also finished the year as the leading audio category, eclipsing the $2.4 billion mark. Home radios and headset CD players spurred the growth in the category, increasing by 4 and 6 percent respectively over 1998.Audio systems grew by 8 percent over last December to revenues of nearly $148 million. Audio systems revenues in 1999 also finished solidly ahead of 1998, posting a 5 percent growth to $2.1 billion. This growth was largely fueled by compact system sales, which finished 9 percent ahead of 1998 at $1.7 billion.The big success story of 1999, however, was aftermarket autosound. Sales of aftermarket autosound products grew by more than 13 percent during the year, to total revenues of nearly $2.2 billion. The growth in this segment is largely attributable to falling price points and consumers' increased desire for component additions, particularly digital technologies that reflect products in the home. Among these products, in-dash CD players experienced an especially good year, growing by an incredible 41 percent over 1998 sales to $935 million. Other products having banner years were car speakers and amplifiers with sales increasing by 6 and 29 percent respectively.In the separate components category, home speaker revenues increased by 17 percent in December. The highlight in the components category, though, was sales of receivers which grew by 10 percent during the year. Specifically, DolbyÆ Digital 5.1 channel surround sound receivers had a tremendous year, growing by 77 percent over 1998 sales.""The strong sales of multi-channel receivers in 1999 supports our belief that consumers are continuing to seek a more complete audio experience,"" said Stephen Baker, Chair of CEA's audio division. ""In 2000, this trend will lead to quick acceptance and excellent sales of the new surround sound formats, such as DVD-Audio and Super Audio CD.""About The CEA (Consumer Electronics Association)CEA is a sector of the Electronic Industries Alliance (EIA), the 76-year-old Arlington, Virginia-based trade organization representing all facets of electronics manufacturing and connecting the industries that define the digital age. CEA represents more than 600 U.S. companies involved in the development, manufacturing and distribution of audio, video, mobile electronics, communication, information technology, multimedia and accessories products that are sold through consumer channels.CEA also sponsors and manages the International CES - Your Source for Workstyle and Lifestyle Technology. All profits from CES are reinvested into industry services, including technical training and education, product promotion, engineering standards development, market research and governmental and legal affairs support.

Source: Consumer Electronics Association (CEA)