More retailers may be building up their service offerings, but product is still the heart of the business. To give you an idea of how specific products will sell over the next 18 months, we’ve selected a few key findings from the Consumer Electronics Association’s new U.S. Sales and Forecasts report. The 66-page biannual study, packed with the latest research, is free to all CEA members and is available to non-members for $999.
One of the biggest surprises in the report is the impact Microsoft’s Vista OS has had on desktop and notebook PC sales, as well as computer gaming software. Instead of falling to an average wholesale price (AWP) of $741 in 2007 from $805 the year before, as was originally forecasted, the price stabilized at $789, with a slight decline to $775 next year. That stability will help drive an additional $1.8 billion in the PC market for projected growth of 12% for this year and 7% next year. The strength of Vista and an expected surge in PC gaming software sales this year will boost the overall software category from $7.2 billion to $7.8 billion next year, for more than 8% back-to-back growth.
Meanwhile, digital media adapters, such as Windows Media Extender and AppleTV, should hit sales of $1 billion in 2008. iPhone and other multifunction smartphones should increase in sales to $21.4 billion in ’08 from $20.3 billion this year.