The consumer electronics industry will exceed initial revenue projections for 2010, with growth of 3% over 2009 and overall shipment revenues of $174.9 billion in the United States, the Consumer Electronics Association (CEA) announced on Thursday.
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 0.3%. Much of the growth across the industry can be attributed to a handful of product categories, such as stereo-3D TVs, smartphones, Blu-ray players, e-book readers and mobile computing solutions, such as tablets, which will contribute billions of dollars to the industry’s bottom line this year.
The semi-annual CEA's sales and forecast report projects that industry shipment revenues will climb 4% to an all-time high of more than $182 billion by 2011.
“Innovation in the CE industry is driving consumer enthusiasm, orchestrating a turnaround for our industry and bolstering the overall U.S. economy. 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 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%. 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.
“The January edition of the forecast was cautiously optimistic about the industry’s return to growth this year. 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," said Steve Koenig, CEA’s director of industry analysis.