Mobile Connected Device Sales Bolster Overall 2011 CE Industry Forecast, According to CEA Semi-Annual Report

ARLINGTON, Va.--()--The consumer electronics (CE) industry will have stronger than anticipated growth in 2011, according to the semi-annual industry forecast released today by the Consumer Electronics Association (CEA)®. The industry is estimated to surpass $190 billion in overall shipment revenues this year, a growth rate of 5.6 percent, which is higher than the previous projection from January. The U.S. Consumer Electronics Sales and Forecast (July 2011) also projects industry shipments will grow in 2012, reaching an all-time high of $197 billion.

“Innovation continues to drive the electronics industry to record levels, even in the face of declining economic growth overall,” said CEA President and CEO Gary Shapiro. “Newer, innovative product categories, like tablets, not only meet consumer demand but also help bolster our industry and strengthen the overall American economy.”

The forecast released today estimates 2011 shipment revenues of 5.6 percent, up from a forecast of 3.5 percent in January and assumes a U.S. GDP growth rate of 2.4 percent. Industry shipment revenues will surpass $190 billion this year, about $4 billion more than anticipated in January. Growth is projected to continue into 2012, reaching $197 billion in shipment revenues, an all-time high.

CEA expects the surging sales of mobile connected devices to be significant enough to push the overall industry higher than previously projected:

  • Tablet computers are projected to grow 157 percent in 2011, with more than 26.5 million units being shipped to dealers and resulting in $14 billion in shipment revenue.
  • Smartphone sales will also see major growth this year and will continue to be the primary revenue driver for the industry. Smartphone unit sales will climb an estimated 45 percent and reach more than $23 billion in industry revenue.
  • eReader unit sales will double this year, with more than 16.5 million units being shipped, resulting in $1.8 billion in revenue.

“One year ago, tablets were a new and unproven market, and now they, along with other mobile connected devices including smartphones and eReaders, are leading the entire industry to positive growth,” said Steve Koenig, CEA’s director of industry analysis. “The revenue boost from these innovative products is undeniable as a number of other CE segments are reaching maturity and sales are naturally declining.”

CEA estimates 88 percent of U.S. households own at least one digital television. Given this high penetration rate, sales of digital displays are expected to fall this year. However, this category remains an important contributor to the industry’s bottom line with 2011 revenues topping $18 billion. Network-enabled displays, however, are a growth segment, with an estimated 10.4 million network-enabled displays shipping to dealers this year. 3D displays will also see better-than-projected growth as 3D becomes a standard feature in displays and is incorporated into more sets across product lines. An estimated 3.6 million 3DTVs will ship in 2011, up from a projected 1.9 million units in January.

Despite slower display sales, consumers are continuing to upgrade their in-home theater experience, and audio sales are rebounding this year. Soundbars are leading the way with 2.4 million units expected to ship in 2011, an increase of 250 percent from last year. In-vehicle technology is also poised for a strong year, as technology in new vehicles is resulting in double-digit growth. As consumers seek to integrate existing devices and content into their vehicle, such as Internet radio, automotive entertainment technology revenues are up more than five percent. Digital cameras will also have a healthy year with unit shipments growing three percent.

The U.S. Consumer Electronics Sales and Forecast 2007-2012 (July 2011) is published twice a year, in January and July. It was designed and formulated by CEA, 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. Non-members may purchase the study for $2,000 at mycea.CE.org.

About CEA:

The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the $186 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 owns and produces the International CES – The Global Stage for Innovation. All profits from CES are reinvested into CEA’s industry services. Find CEA online at www.CE.org and www.Innovation-Movement.com.

UPCOMING EVENTS

  • CEO Summit and Board Retreat
    October 1-3, 2011, Stresa, Lake Maggiore, Italy
  • CEA TechHome Mediterraneo 100 Summit
    October 3-5, 2011, Stresa, Lake Maggiore, Italy
  • Digital Hollywood Fall
    October 17-20, 2011, Marina Del Ray, CA
  • CEA Industry Forum
    October 23-28, 2011, San Diego, CA
  • CES New York Press Preview featuring CES Unveiled @ NY
    November 8, 2011, New York, NY
  • Digital Hollywood New York City
    November 15-17, 2011, New York, NY
  • Future of Television East
    November 18, 2011, New York, NY
  • 2012 International CES
    January 10-13, 2012, Las Vegas, NV

Contacts

Consumer Electronics Association (CEA)
Steve Kidera, 703-907-4358
skidera@CE.org
www.CE.org
or
Laurie Ann Phillips, 703-907-7654
laphillips@CE.org
www.CESweb.org

Contacts

Consumer Electronics Association (CEA)
Steve Kidera, 703-907-4358
skidera@CE.org
www.CE.org
or
Laurie Ann Phillips, 703-907-7654
laphillips@CE.org
www.CESweb.org