Mobile connected devices drive CE industry; resurgence in auto ...

Mobile connected devices drive CE industry; resurgence in auto, audio, TV segments, finds CEA forecast

Press release, July 25; Alex Wolfgram, DIGITIMES?[Thursday 25 July 2013]

Mobile connected devices, including smartphones and tablets, continue to drive consumer electronics (CE) industry sales, according to the Consumer Electronics Association (CEA). CEA also found there has been positive growth in segments within automotive technology, audio products and TV displays. Overall CE industry revenue will hold steady relative to 2012 levels, growing an estimated 0.2% in the US in 2013, said CEA, adding that its forecast for July 2013 also introduces sales data for new categories: fitness technology, desktop 3D printers and Bluetooth/airplay-enabled speakers.

"Despite uncertain economic conditions, 2013 CE industry revenue will remain consistent with 2012 levels," said CEA president and CEO Gary Shapiro. "Fueled by innovation, the CE industry is constantly noted for rapid evolvement, yet the industry has emerged as a consistent and steady force, influencing positive growth and job creation. While on-year sales remain even, we believe the future of the industry remains bright, particularly with the emergence of exciting new product categories like Ultra HD TVs, wearable electronics and 3D printers."

Sales of mobile connected devices, namely smartphones and tablets, continue to drive industry growth. These two devices alone will represent 32.2% of CE industry revenue in 2013, CEA believes. Smartphones are expected to maintain their position as the leading revenue driver for the industry in 2013, with unit shipments projected to reach 127 million during the year. Additionally, smartphone revenues are expected to surpass US$37.8 billion in 2013, a 14% increase from one year ago. Tablet computing will continue double-digit growth in 2013. Unit sales of tablets are projected to reach 87.1 million in 2013 and revenues expected to surpass US$27.3 billion.

"The success of tablets and smartphones underscores the importance of mobility and connectivity today," said Steve Koenig, CEA's director of industry analysis. "These trends are also generating opportunities in many other categories across the industry including audio, video and automotive technology."

Audio continues to see positive growth in 2013, with stronger than anticipated shipments during the first half of the year, added CEA. Home audio unit shipments are projected to increase by 11% to 11.4 million shipments. Major bright spots in audio are soundbars and Bluetooth/Airplay-enabled speakers. Soundbar shipments are projected to increase by 40% over 2012 to reach 2.8 million units, while portable connected speakers should generate US$302 million in total revenue in 2013 ? an increase of 35% on year.

CEA also found there is increasing demand by consumers to integrate their mobile devices into their vehicles. An increase in sales for in-vehicle electronics has led to overall sales revenues for factory-installed systems to reach US$9.2 billion in 2013. The integration of mobile devices is also helping in the aftermarket. Unit growth for head units equipped with Internet radio control or apps is projected to grow by double digits in 2012.

Sales of innovative digital displays continue to increase, despite a steady decline in average wholesale prices. TV sales remain influential to the industry's bottom line, with total TV sets and displays projected to reach US$19.3 billion in 2013, down 3% from 2012 (US$19.9 billion), the firm noted.

Source: http://www.digitimes.com/news/a20130725PR205.html

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