Consumer Electronics Sales Set To Hit $75.6 Bln in '98
yahoo.com
By Mark Egan
LAS VEGAS (Reuters) - Sales of consumer products will grow five percent to a record $75.6 billion in 1998, boosted by strong demand for computers and related products, the Consumer Electronics Manufacturers Association said today.
The industry group projected that factory sales of personal computers for the home will reach $17.6 billion in 1998, a rise of $1.7 billion over the previous year.
Other home information products such as modems, printers, monitors and cordless phones should also post solid sales gains in the coming year, CEMA forecast.
Sales of home information products in 1998 will outpace sales of home entertainment products such as televisions and computers. Home information goods will generate sales of $34.5 billion this year, compared with $20.4 billion for home entertainment goods, CEMA said.
"While home entertainment continues to be an important segment of the consumer electronics industry, home information has become the largest and fastest growing product group," CEMA President Gary Shapiro said in a statement.
On Thursday, Las Vegas plays host to the Winter Consumer Electronics Show where manufacturers showcase the groundbreaking products which will hit retail shelves in the coming year.
More than 1,500 manufacturers will parade their wares at this week's show with more than 100,000 attendees expected.
Digital cameras, which can interact with personal computers, are expected to be hot in 1998.
"The home information product posting the highest growth rate will be digital cameras with an increase of 47 percent between 1997 and 1998," Shapiro said.
Another product seen gaining popular acceptance is the Digital Versatile Disc (DVD) which was introduced in 1997. DVD players, which play movies on a disc similar to a compact disc, are expected to yield $326 million in factory orders in 1998.
Since being introduced last year, more than 200,000 DVD players have found their way into American homes. By comparison, the VHS video recorder, which made its debut in 1970, took about three years to reach that level of acceptance.
Set-top boxes that allow Internet access on a television are also seen gaining popularity in the coming year, CEMA said, predicting $180 million in 1998 orders.
Traditional televisions, VCRs, projection televisions, home satellite systems and camcorders will post more modest gains in the coming year, CEMA said.
Sales of audio products are expected to dip slightly to $5. 7 billion from 1997's $5.9 billion.
On Wednesday a number of major manufacturers offered sneak previews of their new products, including the hottest item at this week's show digital TV sets, which they hope will fuel solid industry growth over the next decade.
By October most broadcasters will start broadcasting digital signals, and by the year 2006 all television signals will be digital.
Digital television offers a picture twice as detailed as existing sets and surround sound, which is more typically found in cinemas. But viewers will only benefit from the digital signals if they trade in their old analog sets for a newer digital model.
With more than 250 million TV sets in use in the United States today, manufacturers are rushing to market this year with digital television sets -- hoping to reap huge profits, once the medium gains acceptance. The new sets are expected to hit retail shelves late this year.
Despite their superior quality, Americans are unlikely to rush to stores to buy the new digital sets because prices are expected to start at $4,000, or more. Consumers are expected to wait until prices fall levels before making the switch.
CEMA predicted that factory sales of consumer electronics products will top $92 billion in 2001, an increase of 115 percent in a decade. |
