Connect with us

Hi, what are you looking for?

New Products

CEA Revises Holiday Forecast

The Consumer Electronics Association (CEA) today revised its projected industry growth for the fourth quarter of 2008 as new data shows the economy and consumer sentiment remain muted and CEA surveys show overall spending is down this holiday season.

After analyzing newly available data, including final October shipment and revenue data and a new survey of Black Friday shoppers, CEA now projects fourth quarter wholesale shipment revenues will increase by 0.1 percent over the same period in 2007. The original forecast, issued in October, anticipated 3.5 percent fourth quarter growth over 2007.

CEA’s earlier forecast was based on shipment data, consumer surveys and economic analysis available in early October. Flat-panel TV shipment revenues in September 2008, for example, were up 32 percent on unit volume and up eight percent on revenue over 2007. In October 2008, unit shipment growth of flat-panels remained high at 22 percent but shipment revenues fell to negative three percent, impacting the fourth quarter forecast. The revised holiday forecast also reflects new data indicating that holiday shoppers are opting for smaller, less expensive TVs and other CE products purchased at discount retailers.

Mobile phones and computers are also feeling the impact of the economy. Mobile phones will see five percent growth in the fourth quarter compared to last year, a projection revised downward from CEA’s 11 percent growth forecast issued in October. Consumers are holding off on upgrading their handsets while steeper than expected price declines are cutting into revenues. Greater than expected discounts on laptops and an increased interest in lower-priced netbooks are impacting the computer category, which is now projected to post a year-over-year revenue decline of two percent, down slightly from CEA’s earlier estimate of negative one percent growth.

“Although CEA certainly took price declines and weakness in consumer demand into consideration, the severity and the speed of declines in these unprecedented times caught everyone off guard. Consumer sentiment is improving, but shopper unease this holiday season is creating challenges for all sectors of the economy, including consumer electronics,” said Jason Oxman, CEA’s senior vice president of industry affairs. “We are now projecting essentially flat revenue for the fourth quarter, and we continue to project overall growth for 2008. We remain vigilant in analyzing all available data to ensure that our forecasts accurately account for changes in circumstance.”

Consumers are taking advantage of lower prices available from a variety of retail outlets. CEA’s Black Friday survey showed that roughly a third of adult consumers shopped between Black Friday and Cyber Monday. Consumer electronics (CE) remained a popular choice for a majority of shoppers. Fifty-four percent of consumers that shopped over the Black Friday weekend purchased a CE device during that period, making it the second most frequent purchase product behind clothing.

About CEA:
The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the $173 billion U.S. consumer electronics industry. More than 2,200 companies enjoy the benefits of CEA membership, including legislative advocacy, market research, technical training and education, industry promotion and the fostering of business and strategic relationships. CEA also sponsors and manages the International CES — Where Entertainment, Technology and Business Converge. All profits from CES are reinvested into CEA’s industry services. Find CEA online at www.CE.org.

Advertisement. Scroll to continue reading.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

Latest Products

HiFiMAN Arya Unveiled Planar Magnetic Headphones Side

New Products

At $1,400, the fourth-generation Arya Unveiled features a removable “Magnetic Veil” back panel and Stealth Magnet Technology.

FiiO BTR17 Portable Bluetooth DAC and Headphone Amplifier FiiO BTR17 Portable Bluetooth DAC and Headphone Amplifier

Dongle DACs

Pocket size FiiO BTR17 offers desktop headphone amp power and performance for $199, using the latest Qualcomm, ESS and THX tech.

Chord Electronics Alto Headphone and Speaker Amplifier in the studio Chord Electronics Alto Headphone and Speaker Amplifier in the studio

Headphone Amps

At $4,320, the Chord Alto is a compact desktop amplifier that powers up to four headphones, a pair of speakers, and also functions as...

Chesky Audio LC1 loudspeaker Chesky Audio LC1 loudspeaker

Bookshelf Speakers

Can an innovative 17-year old speaker designer with a familiar last name breathe new life into the jaded audiophile loudspeaker industry?

Eversolo DMP-A10 Music Streamer Front Angle Eversolo DMP-A10 Music Streamer Front Angle

New Products

At $3,680, the Eversolo DMP-A10 music streamer packs in so much it just may be the Swiss Army Knife of network streamers.

Shanling SM1.3 Network Music Streamer White and Black Shanling SM1.3 Network Music Streamer White and Black

Digital Music Systems

For $1199, the Shanling SM1.3 music streamer comes loaded with features including MQA, DSD512 and up to 32-bit/768kHz hi-res audio.

Gift Ideas?

Splurge Gift Guide for Hi-Fi Audio and Home Theater during Holiday 2024

Gift Guides

Share the love of music and movies with hi-fi audio and home theater gift ideas that are guaranteed to impress.

You May Also Like

Advertisement

ecoustics is a hi-fi and music magazine offering product reviews, podcasts, news and advice for aspiring audiophiles, home theater enthusiasts and headphone hipsters. Read more

Copyright © 1999-2024 ecoustics | Disclaimer: We may earn a commission when you buy through links on our site.



SVS Bluesound PSB Speakers NAD Cambridge Audio Q Acoustics Denon Marantz Focal Naim Audio RSL Speakers