Consumer Spending On Electronics Expected To Rise In The Coming Year

In need of some good news for your weekend? Try this on for size. With the economy on the rebound, many analysts are looking to the consumer electronics sector to see if disposable income is once again being spent on new PCs and other gadgets that we could probably live without, but would rather not. After Microsoft, Intel and just about everyone else suffered less than ideal quarters throughout 2009, we've seen some rather glowing reports from the earnings front this year. And now, the Consumer Electronics Association (the same trade group that organizes CES each year) is estimating that spending on consumer electronics will be quite lofty in 2010.

How lofty? Recent reports of positivity around the industry have forced them to raise projections for sales to retailers to $174.9 billion. That's a solid 3% growth from last year, with the new forecast being a whopping $9 billion higher than the prior one. And if you thought the trend would level out, shipment revenue is expected to hit a new high of over $182 billion by 2011.

Of course, it's impossible to really nail down these figures. They could change like the wind, but just seeing this much positivity is a real turn for the better. Analysts are expecting the 3D universe as well as smartphones and Blu-ray players (along with ereaders) to really push the spending, with Steve Koenig, director of industry analysis, noting that the forecasts were primarily pushed up due to just how fast new categories of products are growing. Only time will tell if all of this plays out, but it's certainly a good sign that people are back into spending on CE.

 CE Industry to Surpass $174 Billion in 2010, Reach Record High by 2011

Innovation Drives CE Industry, U.S. Economy

ARLINGTON, Va.--(BUSINESS WIRE)--The consumer electronics industry will exceed initial revenue projections for 2010, with growth of three percent over 2009 and overall shipment revenues of $174.9 billion in the United States, the Consumer Electronics Association (CEA)® announced today. The semi-annual U.S. Consumer Electronics Sales and Forecast (July 2010) also projects that industry shipment revenues will climb four percent to an all-time high of more than $182 billion by 2011.

    “The response to innovative new products like tablet computers and 3D displays, and continued growth of other product categories, illustrate that consumers love technology. The freedom to innovate delights consumers, sustains our industry and strengthens the economy.”

“Innovation in the CE industry is driving consumer enthusiasm, orchestrating a turnaround for our industry and bolstering the overall U.S. economy,” said CEA President and CEO Gary Shapiro. “The response to innovative new products like tablet computers and 3D displays, and continued growth of other product categories, illustrate that consumers love technology. The freedom to innovate delights consumers, sustains our industry and strengthens the economy.”

The latest forecast increases CEA’s estimates for 2010 shipment revenues, last updated in January of this year, by more than $9 billion. The CE industry will see three percent growth in 2010, up from an earlier projection of .3 percent. Much of the growth across the industry can be attributed to a handful of product categories—3DTVs, smartphones, Blu-ray players, eReaders and mobile computing solutions, such as tablets—that will contribute billions of dollars to the industry’s bottom line this year.

“The January edition of the forecast was cautiously optimistic about the industry’s return to growth this year,” said Steve Koenig, CEA’s director of industry analysis. “Despite a relatively sluggish first half, these innovative product categories have generated a great deal of consumer interest. As a result, we see a stronger second half demand unfolding, and we anticipate a robust holiday quarter.”

The mobile computing category is expected to have a strong 2010 and become the primary revenue driver for the CE industry by 2011. CEA projects that mobile computing, which includes laptops, netbooks and tablet computers, will reach more than $26 billion in shipment revenues by next year. Most of the growth in the computing category will be driven by tablet PCs as more companies enter the marketplace.

As a category, wireless handsets are also seeing continued growth. CEA projects that by 2011, wireless handsets will contribute $26 billion to the industry’s bottom line. Smartphones continue to be the key driver, with more than 54 million units expected to ship in 2010, an increase of nearly 31 percent. By 2011, more than 66 million smartphones will ship to dealers, generating $19.6 billion in revenue.

According to the U.S. Consumer Electronics Sales and Forecast (July 2010), digital displays will continue to see major growth with increasing unit sales but slightly less revenue due to fierce pricing competition. Shipments of 3D displays will increase to 2.1 million this year, doubling the original forecast in January, and shipment revenue will top $2.7 billion. By 2011, more than six million units are projected to be sold, generating more than $7 billion in revenue.

U.S. Consumer Electronics Sales and Forecasts 2006-2011 (July 2011) is published twice a year, in January and July. It was designed and formulated by CEA, the producer of the International CES, where these products and trends are first launched. CEA is the most comprehensive source of sales data, forecasts, consumer research and historical trends for the consumer electronics industry. Please cite any information to the Consumer Electronics Association (CEA)®. The complete report is available free to CEA member companies at Non-members may purchase the study for $2,000 exclusively at

About CEA:

The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the $175 billion U.S. consumer electronics industry. More than 2,000 companies enjoy the benefits of CEA membership, including legislative advocacy, market research, technical training and education, industry promotion, standards development and the fostering of business and strategic relationships. CEA also sponsors and manages the International CES – The Global Stage for Innovation. All profits from CES are reinvested into CEA’s industry services. Find CEA online at