Consumer electronics industry growth rate beats projection in H1 2004
Sep 09, 2004
Industry Sales of $100 Billion in 2003 Jump to $108 Billion in 2004
According to revised figures released today by the Consumer Electronics Association (CEA), sales of consumer electronics products exceeded $100 billion in 2003, setting a new record and marking a fourfold increase over the 2002 growth rate. CEA forecasts 2004 sales to surpass $108 billion, breaking the record mark set in 2003.
"Consumer demand for digital products continues to drive consumer electronics sales beyond our earlier projections," said Gary Shapiro, president and CEO of CEA. "Consumer enthusiasm going into the fourth quarter of 2003 further catapulted overall sales. Across the board, consumer electronics sales exceeded projections as consumers saw the right prices at the right time. Even as we celebrate record sales in 2003, we expect that 2004 will be an even bigger year as our growth rate continues to climb."
Almost every product category performed better than anticipated in 2003 by $100 million to $200 million, according to CEA's new figures. Manufacturer-to-dealer sales of personal computers (PCs) and digital televisions (DTV) stood as two of the main categories driving final 2004 figures above CEA's original forecast of $96.3 billion. PCs held strong as the largest single product category with sales exceeding $15 billion, as home information products remained the biggest consumer electronics sector with sales over $38 million in 2003.
Added Sean Wargo, senior industry analyst for CEA, "Huge numbers of flat panel and rear projection DTV sets were sold last year. In fact, sales of just flat panel TVs topped $2 billion, and the numbers will continue to increase in 2004."
Wargo explained wireless phones also contributed to strong overall sales in 2003. Sales of wireless phones were over $9 billion and they are expected to top $10 billion by the end of 2004.
Sales of digital products will again take the industry to new heights in 2004, noted Wargo.
"MP3 and DTV will help drive 2004 sales to a record estimated $108 billion. Total TV revenues (analog and digital combined) are expected to rise 17% this year to $13.6 billion, marking the biggest invoiced total for TVs in history."
Data cited in this release is available for purchase through CEA's Market Activity Reports and Analysis (MARA) program. With more than 500 reports published annually, the MARA program is recognized as the "authoritative source" for data on the consumer electronics industry. For a list of available reports and purchasing information, visit www.eBrain.org/mara or send an e-mail request to email@example.com.