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U.S. Consumer Electronics Spending Will Grow by About 5 % in US Dollar Terms in 2013
We project that US consumer electronics spending will grow by about 5 % in US dollar terms in 2013 , with growth areas including Ultra-high HD TV sets, smartphones , Windows 8 tablets, ultrabooks, and smart TV sets, but question marks remain about the sustainability of consumption in the absence of strong wage growth.
Smartphone sales increased by around 9% in H112 and surveys indicate increasing smartphone ownership among lower-means households, with annual incomes of US$35,000 or below. Surveys suggest returning consumer confidence, but vendors will largely rely on product innovation such as smart TV sets to drive growth. Falling average prices in many product categories will place revenue and margins under pressure.
Headline Expenditure Projections
Computer hardware sales: US$149bn in 2012 to US$154bn in 2013, +3.4% in US dollar terms. Forecast in US dollar terms unchanged but Windows 8 based tablets and notebooks could provide growth areas in 2013.
AV sales: US$70bn in 2012 to US$75bn in 2013, +7% in US dollar terms. Forecast in US dollar terms upwardly revised following evidence that U.S. consumers are willing to pay more for features such as 3D and large-screens.
Handset sales: US$32bn in 2012 to US$35bn in 2013, +7% in US dollar terms. Forecast in US dollar terms downwardly revised but Android phones continue to dominate the growing smartphone segment.
Risk/Reward Rating: The USA's score was an unchanged 76.4 out of 100.0, which gave it first place in our latest Americas CE RRR table. The country ranked first in its region for all component scores including Market, Country Structure, and Country and Market Risk. Despite its current economic challenges, we expect the US to retain its significance as the world's largest and most influential consumer electronics market.
Details of the new report, table of contents and ordering information can be found on Electronics.ca Publications' web site. View the report: "United States Consumer Electronics Report".