Americans Will Spend $155 Billion On Consumer Electronics This Year

Consumer electronics revenue will exceed $155 billion this year, according to a semiannual industry report released by the Consumer Electronics Association.

"The consumer electronics industry has outdone itself once again, with revenues totaling $145 billion in 2006, and we're on track for another year of healthy growth," said CEA President and CEO Gary Shapiro in a statement. "We surpassed original projections for the second year in a row, and the industry outlook is proof positive that Americans can't do without their beloved consumer electronics. Consumers are benefiting from our industry's innovations and only want to see more of them."

"U.S. Consumer Electronics Sales and Forecasts 2002-2007," released just before this week's 2007 International Consumer Electronics Show, said consumer electronic revenue grew 13% in 2006, outpacing the CEA's forecast of 8%.

Todd Thiobodeaux, senior VP of industry relations for the CEA, said the transition to digital television and the falling prices of plasma and LCD flat panel displays would fuel demand in the television market and display technologies to account for $26 billion in consumer electronics revenue this year.

Other forms of entertainment also will drive revenue growth, according to the CEA. Holiday sales are expected to raise game console revenues to $16 billion this year, a 23% increase over 2006, while 41 million MP3 players are forecast for shipment this year, up from 34 million last year.Thibodeaux said that as many consumers replace older music players with models that offer video playback ability, MP3 players are expected to account for 90% of the $6 billion in revenue for portable entertainment.

The CEA predicts that portable navigation and GPS devices will generate $1 billion in revenue, with 3 million units shipping this year. Accessories are expected to bring in $11 billion in revenue this year, with increasing consumer focus on portability, according to the CEA. PCs and digital imaging devices are likely to continue driving revenue growth as well, according to CEA's report.