Consumer Electronics Industry To Grow Substantially By 2011

Even though there are some complaints about weakened demand in Europe, because of the crisis that is being felt in that region, general forecasts for 2010 still seem to be favorable in most areas. On the consumer electronics front, things seem to be going especially well, at least that's what CEA (Consumer Electronics Association) suggested in its recent press release. Apparently, the CE industry is growing well and, though it will perform quite admirably this year, it will truly reach an all-time high in 2011.

CEA foresees yearly revenue increase of about 3% on-year. Mostly, this can be attributed to several product categories, namely smartphones, Blu-ray players, 3DTVs, eReaders and other mobile gadgets, such as tablets.

Nevertheless, it is 2011 that will truly mark an all-time high, with total revenues expected to reach a solid total of $26 billion or more.

“Innovation in the CE industry is driving consumer enthusiasm, orchestrating a turnaround for our industry and bolstering the overall U.S. economy,” said CEA President and CEO Gary Shapiro. “The response to innovative new products like tablet computers and 3D displays, and continued growth of other product categories, illustrate that consumers love technology. The freedom to innovate delights consumers, sustains our industry and strengthens the economy.”

“The January edition of the forecast was cautiously optimistic about the industry’s return to growth this year,” said Steve Koenig, CEA’s director of industry analysis. “Despite a relatively sluggish first half, these innovative product categories have generated a great deal of consumer interest. As a result, we see a stronger second half demand unfolding, and we anticipate a robust holiday quarter.”

Smartphones will be the key driver of this market, with shipments estimated at 54 million in 2010 and 66 million in 2011. They will provide $19.6 billion in revenues. Other noteworthy categories are wireless handsets and mobile computers.