Home electronics for the holidays
SAN JOSE, Calif.--The average shopper continues to go bonkers for consumer electronics, according to the Consumer Electronics Association, but the party won't last forever.
Worldwide shipment revenue of MP3 players, digital cameras, DVD players and the like will come to $140 billion in 2006, and then climb to $149.3 billion next year, Sean Wargo, the association's director of industry analysis, said at the Samsung Executive Summit here on Wednesday. In 2002, worldwide revenue came to $98.4 billion.
He added that 2006 has been somewhat spectacular in terms of growth. Worldwide revenue in the second and third quarters grew by 20 percent from the same periods the year before. The industry has never seen back-to-back quarters like that, he said. Revenue for the fourth quarter is expected to climb 15 percent, he added, and that's a fairly conservative estimate. Last year, revenue grew 13 percent in the fourth quarter from the year before.
Part of the growth comes from how electronics have become ensconced in the home. In 1975, the average American home had 1.3 consumer electronic products in the house and spent about $84 a year on such goods. In 1985, that rose to 5.4 products and spending of $344 a year. In 1995, the figure rose to 13.5 products and an average annual spending of $833. Now, Americans have 25 consumer electronic products in the home on average and will spend about $1,500 on electronics a year, Wargo's data showed.
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