The Consumer Electronics Association released a report on Tuesday in which it said the overall consumer electronics industry is expected to grow 5.9% this year. As a result of that growth, the association stated industry sales will pass $206 billion in 2012 — the first time the industry has surpassed $200 billion — and will grow an additional 4.5% in 2013 to a $215.8 billion in sales revenues.
Connected device sales were the primary catalyst behind the growth, the CEA said.
Tablet sales are expected to hit $29.1 billion in revenues from shipments this year, which represents an 83% growth over last year and more than $10.8 billion than the industry group projected back in January. The group said it expects more than 68.5 million tablets to ship by the end of the year.
“Tablets are the fastest-growing product category in the history of the CE industry, and sales will continue to increase as more products hit the market, offering consumers more choices in size, price, operating systems and app ecosystems,” CEA’s director of industry analysis Steve Koenig said in the report. “With U.S. household penetration of smartphones surpassing the 50 percent threshold, we’re seeing slowing sales of dedicated devices, as consumers seek singular devices that can perform multiple functions. We expect this trend to continue into 2013.”
Likewise, the CEA projects that 108 million smartphones will be shipped by the end of the year, pushing shipment revenues to $33.7 billion — or 24% more than shipment revenues in 2011. Laptop sales are increasing, despite claims that tablets are killing off PCs. The CEA found that 21.3 million laptops are expected to ship to dealers this year and that revenues from sales should hit $14.9 billion. 3D Television sales are expected to increase 104 percent over 2011, the CEA noted, and shipment revenues are expected to increase 75% to $7 billion this year.
CE Industry Yearly Revenues Expected to Surpass $200B for First Time
“The CE industry is offering what consumers want during these uncertain economic times: innovation and value,” said CEA President and CEO Gary Shapiro. “Consumers’ desire for connected devices is pushing projected revenues higher than originally anticipated, but the long-term health of our industry relies on a strong and growing U.S. economy.”
Sales of mobile connected devices, led by tablets, have pushed overall industry revenues to record highs:
- Tablets are expected to reach $29.1 billion in shipment revenues this year, $10.8 billion more than forecasted in January, representing 83 percent sales growth year-over-year. Unit sales are expected to reach 68.5 million.
- Smartphone sales will also see continued growth this year and will remain the primary revenue driver for the industry. Shipment revenues for smartphones are expected to reach $33.7 billion in 2012, with more than 108 million units shipping to dealers, up 24 percent from 2011.
- Laptop sales continue to increase as consumers demand mobility in computing solutions. Led by the introduction of ultrabooks, overall laptop sales to dealers are expected to reach $14.9 billion, with 21.3 million laptops shipping to dealers.
“Tablets are the fastest-growing product category in the history of the CE industry, and sales will continue to increase as more products hit the market, offering consumers more choices in size, price, operating systems and app ecosystems,” said Steve Koenig, CEA’s director of industry analysis. “With U.S. household penetration of smartphones surpassing the 50 percent threshold, we’re seeing slowing sales of dedicated devices, as consumers seek singular devices that can perform multiple functions. We expect this trend to continue into 2013.” Sales of innovative digital displays continue to increase despite an ongoing decline in overall TV sales, and remain critical to the industry’s bottom line.
- Unit sales of networked-enabled TVs are projected to surpass 10 million, growing 56 percent in 2012. Shipment revenues will reach $9 billion, up 20 percent year-over year.
- Sales of 3D-enabled displays are also growing. Unit sales in 2012 are expected to reach 5.6 million, up 104 percent year-over-year. Shipment revenues will jump 75 percent, to more than $7 billion.