CE Market Grew in Second Quarter
The global consumer electronics market has begun expanding again, but not enough to signify a true recovery. That’s the conclusion of a report issued Tuesday by research firm iSuppli Corp., which believes that recovery will be delayed because prices are too low.
Following a first quarter in which revenue from global CE equipment fell by nearly 26 percent, the industry rebounded in the second quarter to a a 4.2 percent gain, to $71.1 billion. iSuppli predicted that revenue will rise by 12.5 percent and 10.2 percent, respectively, in the third and fourth quarters.
However, the firm forecasts an 8.2 percent decline for the year, to $307.6 billion, which iSuppli attributes to both the global economic downtown and lower prices.
“With the recession having eaten into consumers’ disposable incomes, the consumer electronics industry has responded by cutting prices on popular products,” iSuppli’s senior analyst for CE, Sheri Greenspan said as part of the relaase of the data. “In diverse areas from digital still cameras, to video game consoles to LCD-TVs, manufacturers are offering price cuts to help move product.”
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