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Ilse Jurriƫn : January 5th 2006 - 18:20 CET

Consumer electronic sales record in 2006

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CESCEA reports consumer electronic sales record in 2006 : Factory sales of consumer electronics will reach a new high of $135.4 billion in 2006, according to the Consumer Electronics Association's (CEA) annual industry forecast released today as the industry prepares to convene in Las Vegas for the CES 2006, the world's largest consumer technology tradeshow. "The numbers say it all, the consumer electronics industry is hot," said Gary Shapiro, CEA's president and CEO. "Sales exceeded our expectations in 2005, totalling $125.9 billion and we're forecasting 8 percent growth in 2006." The complete report is available free to CEA member companies. Non-members may purchase the study for $149 at www.ebrain.org/pubs/pubs_cons.asp.
Consumer electronic sales record in 2006Consumer electronics - CES 2006
The 2006 projections, 2005 year-end figures and more are included in CEA's bi-annual U.S. Consumer Electronics Sales and Forecasts report, which is released every year at the International CES and updated mid-year. According to the report, 2005 year-end totals exceeded CEA's initial projection of $122 billion, increasing by 11 percent over 2004. CEA attributes much of the growth in 2005 to next-generation product lines and innovations to wireless devices, flat panel displays, MP3 devices and gaming consoles and software.

Consumer Electronics Association report
Gary Shapiro, CEA's president and CEO continues: "Consumer electronics sales are consistently growing, breaking records every year, because our industry is constantly changing to provide products that consumers love and can't live without. I cannot wait to see the thousands of new products unveiled this week at the International CES that will continue to grow this amazing industry."

Digital television - LCD TV and Plasma screen
CEA projects that sales of digital television (DTV) will continue to drive industry sales to new heights in 2006, forecasting total sales to surpass $23 billion and 18 million units. DTV sales in 2005 grew 60 percent to $17 billion. This growth is attributable to the growing popularity and competitive price declines of flat panel displays such as LCD and plasma. Combined, these displays accounted for 40 percent of all DTV sales. Analogue and digital LCD TVs combined for $3 billion and four million units. Plasma TVs sold nearly two million units for a total of $4 billion in dollar sales. High-definition television (HDTV) continues to claim 85 percent of the total DTV market.

Gaming console - Software and MP3
Launches of next-generation gaming consoles will continue throughout early 2006, pushing the gaming market to $14 billion. The gaming category experienced healthy growth in 2005 with total shipment revenues of $12 billion as the first releases of next-generation gaming consoles and compatible software titles hit dealer shelves. CEA also forecasts a continued strong market for MP3 players as devices with video playback capability grab the attention of consumers.

MP3 player - Audio and Video
"We are projecting an increase in sales of MP3 players to $4.5 billion in 2006, with 30 percent of all MP3 players sold having video playback capability," said CEA Director of Industry Analysis Sean Wargo. "MP3 technology helped boost the audio and accessories markets in 2005. With the introduction of video playback capability, MP3 player sales surged 200 percent in 2005 to $3 billion. Trends in 2006 should be no different."

Mobile phone - Wireless communication
CEA is predicting that total wireless handset sales will exceed $16 billion in factory-to-dealer sales this year. Wireless communications devices such as telephones drove the CE industry in 2005, largely in part to the introduction of phones that have multiple features and functions. Many phones in today's wireless market come equipped with digital cameras and camcorders, MP3 players, GPS navigation, live TV capability and even serve as portable modem connections. Some 104 million wireless handsets were sold in 2005 for a total of $13.5 billion.

About CEA
The Consumer Electronics Association (CEA) is the pre-eminent trade association promoting growth in the consumer technology industry through technology policy, events, research, promotion and the fostering of business and strategic relationships. CEA represents more than 2,000 corporate members involved in the design, development, manufacturing, distribution and integration of audio, video, mobile electronics, wireless and landline communications, information technology, home networking, multimedia and accessory products, as well as related services that are sold through consumer channels. Combined, CEA's members account for more than $125 billion in annual sales.

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