Connect with us

Hi, what are you looking for?

New Products

Consumer Technology Spending Increases, But Slows

Spending on Consumer Technology Products Increased in 2006 but at a Slower Rate, According to The NPD Group

U.S. consumers spent more money on consumer technology products in 2006, but just as we saw during the holiday, they did so at a slower pace. According to The NPD Group’s consumer tracking service, U.S. consumer technology sales* increased 3.6 percent to $111 billion, down from the 7.2 percent growth experienced in 2005.

More consumers shopped in the stores than online in 2006, with brick and mortar revenue increasing by 4.6 percent to $85.8 billion, while e-commerce experienced only 0.5 percent growth to $25.2 billion.

Household income was a major contributing factor to the rise in 2006 consumer technology sales. Sales to high-income consumers, those with incomes over $75,000, increased 5.7 percent and accounted for 43 percent of consumer technology revenue in 2006.

Sales of all TVs in retail stores increased 15.7 percent to $18.2 billion while unit sales remained flat. E-commerce sales jumped 40 percent both in units and dollars to two million and $1.8 billion, respectively. However, online revenue only accounted for 8.7 percent of total TV sales, and units were only 6.4 percent of all TVs sold.

“While we saw good growth in online TV purchases, the e-commerce channel is just too small to have a material impact on the market right now, but that is likely to change,” said Stephen Baker, vice president of industry analysis, The NPD Group. “As large screen TV prices become more affordable we expect to see online TV sales grow.”

Advertisement. Scroll to continue reading.

Retail sales were the principal driver for the PC market. Two-thirds of the $54 billion in IT product revenue came from retail, making it the third straight year that retail sales have outpaced e-commerce. Dell’s well publicized challenges have resulted in a major slowdown in consumer purchasing of PCs online.

“E-commerce is growing, but slower than retail,” said Baker. “As some of these structural changes evolve we expect to see online sales increase, however, for now, consumers continue to prefer the retail experience when they purchase technology.”

MP3 player retail sales were a big contributor in 2006. Sales of MP3 players increased 23 percent to over $6 billion. Nearly 78 percent of both unit and dollar volume came from retail sales, an increase of five percentage points from 2005.

* Consumer technology sales include IT, imaging, audio, video, and consumables.

About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,600 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, visit http://www.npd.com/.

Advertisement. Scroll to continue reading.
Click to comment

Leave a Reply

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

Advertisement

Our Reviews

HiFiMAN

$349 open-back headphone will amaze first time listeners who have never tried planar magnetic headphones.

Headphone Amps

For only $99, the Magni 3+ is a fully discrete, current-feedback headphone amplifier that's extremely quiet and powerful enough for the vast majority of...

Integrated Amps

Depending on your budget, the $449 NAD C 316BEE V2 might be the ideal stereo integrated amplifier to build a hi-fi system around.

Phono Preamps

Review and comparison of three phono pre-amplifiers priced under $1000 from Croft Acoustics, Pro-Ject and iFi Audio that sounded exceptional, yet nothing alike.

Bookshelf Speakers

The new Lumina collection brings the artistry of Sonus faber loudspeakers to a much wider audience for a lot less money.

Reviews

BDI sets a high bar with another modern media console designed to conceal all your electronics and a sound bar in an elegant ventilated...

You May Also Like

Articles

Streaming digital music from an audiophile-grade component will not only sound better, but provide greater multi-room functionality.

Apple

Apple's first 5G iPhones are now available in 6.1-inch screen sizes. Find out which one could be right for you.

Apple

At $599, the 4th generation Apple iPad Air is the tablet for most people, especially those looking for a laptop replacement.

Articles

Explore BDI's highly functional range of TV stands and media consoles to beautify your home theater. Plus get tips and advice when shopping for...

Advertisement

ecoustics is the unbiased resource for the latest technology news, coolest gadgets, and best consumer electronics. Plus get product reviews, roundups and deals from all over the web on everything electronic. Read more



Copyright © 1999-2020 ecoustics | Disclaimer: ecoustics may earn a commission when you buy through links on our site.