Sales of Consumer Electronics Down 6% This Holiday Season

Sales of computers, TVs and other electronics dipped 5.9 percent to about $9.5 billion for the five weeks ending Dec. 24, only a slight improvement over the 6.2 decline for the same period in 2010, according to the market research firm NPD Group.
Despite tough times within the PC and TV marketplaces, sales for those two core categories dipped just 4 percent in dollars over 2010, and unit volumes were essentially flat year-over-year, NPD Group reported.
DVD/MP3 players and GPS devices did not fare as well.
The NPD Group’s figures do not include sales of cell phones, tablets and e-readers.
“2011 was the first year in quite awhile where the real drags on the core marketplace were not TVs and PCs,” said Stephen Baker, vice president of industry analysis at NPD. “Revenue for those two segments outperformed, while the rest of the market dropped by more than 7 percent. The accelerated rate of decline in older technology categories, such as DVD, GPS and MP3 players, put a ceiling on how well the industry could perform during the holiday.”
Desktop PCs posted a 2 percent unit volume increase, but it wasn’t enough to offset the 5 percent decline in notebook sales which brought overall PC sales down 4 percent. Average prices jumped $9 year-over-year to $575, continuing last year’s trend of increasing holiday pricing levels.
Big-screen sets gave the TV market a big boost, thanks to unit sales of TVs, with screen sizes 50 inches and higher increasing by 32 percent. About one in six flat-panel TVs sold were larger than 50 inches, while the share of flat-panel TVs greater than 60 inches more than tripled.
Meanwhile, 32-inch TVs, the market’s largest single size segment, saw revenue drop almost 9 percent and the average price fall to $277.

Leave a Reply

Your email address will not be published. Required fields are marked *