The Consumer Electronics Sweet Spot in the Economy

Dealerscope
January 25, 2012
From News

Consumer confidence in the overall economy in January 2012, according to the latest Consumer Electronics Association Index, reached its highest point since February 2008. Consumer confidence in technology spending fell in January 2012, which CEA said is consistent with previous post-holiday results.

CEA's measures consumer expectations about the broader economy, the Index of Consumer Expectations (ICE), was 177.3 in January 2012, up from 170.7 in December 2011. It is also up from 175.7 in January 2011, which was the highest point for the index.

Twice a year CEA assesses the state of the industry - where it is and where it's going - with our industry forecasts. At the mid-point of 2011, we saw further evidence that mobile connected devices were an inextricable part of our contemporary lifestyles. The question was whether the momentum would build and by how much? With the results from our winter forecast tabulated, we can confirm that this story has only gotten bigger … and better.

The two major products that dominate the industry and marketplace right now are smartphones and tablets. More than 87 million units of Smartphones shipped in 2011, up 62 percent from 2010. The category generated $27.5 billion, a 57 percent increase from one year ago. About 29.4 million tablets shipped in 2011, up 185 percent from 2010, generating $15.9 billion, a 138 percent increase year-over-year. This explosive growth can largely be attributed to the natural -and typically gradual- interval between initial adoption and eventual ubiquity.

Simply put, consumers now expect to control and use their content wherever they happen to be, whether it's at home, during the commute or on vacation. Needless to say, the industry will pay continued attention to the successful formula of portable plus dynamic.