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Consumer electronics boom to stop in 2007?

Posted on Sunday, January 07 2007 @ 00:26:20 CET by

At the opening of this year’s Consumer Electronics Show in Las Vegas, Strategy Analytics announces that 2006 sales of digital consumer electronics reached $167 billion worldwide in 2006, an increase of 31%. But the outlook for 2007 is for a rapid slowdown as exploding demand for flat panel TV comes to an end.

Strategy Analytics’ latest report, “Global Digital Home Devices Market Forecast”, predicts revenues of $191 billion in 2007, an increase of only 11%. Games consoles will be the star category this year, with Sony’s PS3 driving much of the growth.

“The consumer electronics industry has had a great couple of years, but it can’t last for ever,” notes David Mercer, VP and Principal Analyst at Strategy Analytics. “Our demand models indicate that sales of flat panel TVs, which have been the major revenue driver in recent years, are set to plateau. We see no other digital devices that can compensate for this loss.”



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