More in

Consumer electronics ‘prospering’

1 min read

Despite the economic downturn, some consumer segments are not just holding their own, but actually prospering, according to a report by market analyst iSuppli.

The report says that while global consumer electronics equipment revenue is expected to decline by 8.2% ($308billion – down from $335bn in 2008), recovery is rxpected to begin in 2010 with 2% growth to $314bn. iSuppli predicts that growth will continue through the five year forecast period, reaching $370bn by 2013. According to the report, the downturn has hit prices of lcd tvs from a panel and semiconductor point of view in the first half, but this is expected to stabilise if the global economy recovers in 2010. However, this will not stop the long term decline of lcd tvs average selling prices, due to factors such as a shift to smaller screen and lower priced models; aggressive retail pricing and rising pressure on panel manufacturers; and increases in manufacturing efficiency. Other segments that are performing well in the face of downturn include set top boxes and game consoles. iSuppli reports that there will be a positive first half for this market because sales of premium boxes continued to surge – particularly in the digital video recorder arena and the switch to digital broadcast signals has also helped. The report reveals that game platforms seem immune to the recession. Sales have been helped by Microsoft reducing its Xbox 360 price to $199 and could be further enhanced if rumours that Sony is to cut its PlayStation 3 by $100 come to fruition.