CE: A Bright Light in a Dim Economy
There’s no shortage of dire economic news today: the credit crunch, rising food and fuel prices, the housing market slump, auto sales atrophy and so on. Yet, as the U.S. economy struggles to avoid recession, the overall consumer electronics industry continues to thrive. Counter to the litany of downside economic data, the latest industry forecast from the Consumer Electronics Association predicts total CE industry shipment revenues will rise 7.3 percent this year reaching a new high of $173 billion.
I know what you’re thinking. Revenue growth of 7.3 percent this year? In this economy? That sounds optimistic, even overly positive. But before you dismiss this projection, consider how intricately woven consumer electronics devices are in our society. While consumers may be cutting back in some areas like clothing, gasoline, eating out, etc., they are unwilling to sacrifice their CE tools and toys.
The evidence is all around us: dozens of people queued up outside Apple stores to buy the latest iPhone; early morning squatters encamped at the doors of a Circuit City location in the hopes of purchasing a Nintendo Wii; or the family loading a jumbo flat-panel display into their minivan at Costco.