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CE sales boom is ending

by User Not Found | Jan 06, 2007

I just returned from the CEA's overview of the state of the CE industry, and their forecasts for 2007 confirm our own views - that sales growth will decline significantly. We just published data indicating that worldwide revenues for digital home devices reached $167bn in 2006, a growth rate of 31%. The 2007 number is likely to hit $191bn, growth of just 11%. Of course the CEA's data covers just the US, and they include a number of categories that we exclude, but the general picture of a slowdown is agreed.

The main culprit in our view is the predicted maturing of the flat panel TV market. The manufacturers here at CES will be telling us that they have lots of tricks up their sleeves to persuade consumers to keep spending on the higher end TVs, so we'll take a look at what some of those tricks might be over the next few days. The bottom line is still the same, though: we're all looking out for the next hot product that will re-inject faster growth rates into the industry.
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