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January 7, 2007CEA dresses up gloomy industry growth data
Growth in overall sales of consumer electronics this year will be cut in half, according to data from the Consumer Electronics Association that organizes CES. Consumer this year will spend only 6.5 per more on gadgets than last year, where the industry grew by an impressive 13.5 per cent in 2006.
At a press event on Saturday, the sector tried its hardest to slap a bright coating on the dark data. Spending on consumer gadgets is still more than double overall economic growth, indicating that the CE sector is at least stealing consumer dollars from other sectors of the economy, cheered Sean Wargo, a senior industry analyst for CEA.
The real issue, however is that there is a lack of new innovations that can drive new consumer spending at premium prices. Flat panel TVs have become mainstream items and likewise their prices have started a rapid decline. The same is the case of portable media players.
Services such as Youtube may be on the rise, but they don't have any impact on consumer buying – at least not yet. And the question remains if they ever will.
Wargo is confident that the next big thing will come in the near future. But such a prediction should be expected from a trade association on the eve of its biggest annual cheer fest.
Nothing hip left about it
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