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Trillion-dollar forecast for gadgets

As the top US consumer electronics trade show prepares to open this week, organisers are forecasting that global gadget sales may top $US1 trillion.

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Source: AAP


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As the top US consumer electronics trade show prepares to open this week, organisers are forecasting that global gadget sales may top $US1 trillion ($A996.51 billion) this year for the first time ever.

The Consumer Electronics Association (CEA) said on Tuesday that worldwide annual spending on mobile phones, computers, television sets and other items is expected to rise 10 per cent in 2011 to $US964 billion ($A960.64 billion).

"We may very well hit the trillion mark," said Steve Koenig, director of industry analysis for CEA, organiser of the annual Consumer Electronics Show (CES), which kicks off in Las Vegas on Thursday.

"I'm bullish," Koenig told reporters. "That number is truly within reach."

Sales of smartphones, touchscreen tablet computers, electronic book readers and flat-panel liquid crystal display (LCD) television sets are among the items expected to power the industry to record heights.

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Many of the latest devices will be on display on the sprawling show floors at the Las Vegas Convention Center, where the four-day event is expected to attract more than 125,000 visitors from around the world and 2,600 exhibitors.

The CEA said it expected consumer electronics sales to grow by 23 per cent in Western Europe this year and 15 per cent in both North America and China.

Growth for Asia -- excluding China and Japan -- was forecast at 12 per cent.

Consumer electronics sales were expected to increase by 10 per cent in South America, eight per cent in Japan, seven per cent in Africa, five per cent in Eastern Europe and four per cent in the Middle East.

Consumer electronics sales increased 13 per cent in 2010 to $US873 billion ($A869.96 billion) after falling nine per cent in 2009 in the depths of the recession.

CEA chief economist Shawn Dubravac said smartphones and tablet computers like Apple's popular iPad were expected to be among the hottest items in 2011.

"The standard handset is a declining market," Dubravac said. "All the growth you see is in smartphones."

The CEA forecast that tablet computer sales would double this year over last year to around 30 million units while e-readers such as Amazon's Kindle would ring up sales of nearly 20 million units worldwide.

"Tablets will be one of the key themes at this year's show," Dubravac said, as technology companies seek to emulate the success of Apple's iPad.

"I wouldn't be surprised if we saw 100 plus tablets at CES," he said, adding that the optimal price point for the devices appears to be around $US350 ($A349).

The CEA said mobile computers - which include tablets - will account for $US220 billion ($A219.23 billion) in total personal computer sales of $US316 billion ($A314.9 billion) in 2011, with desktop computers accounting for the remaining $US96 billion ($A95.67 billion).

Web-connected televisions are expected to see continued growth with the CEA forecasting that 52 per cent of TV sets sold in 2014 would allow users to access the internet.

Just nine per cent, or 3.2 million, of the TV sets sold last year were internet-enabled, according to the CEA, a figure expected to jump to 15 per cent, or 5.2 million, in 2011.

While Web-connected TVs are expected to take off and LCD TV sales are forecast to remain strong, 3D television sets have yet to catch on, in part because they are still considered to be too expensive, Dubravac said.

He added that an emerging trend across devices - from smartphones to tablet computers to TV sets - was the increasing popularity of the dedicated mini-programs known as applications.

"Apps are huge," he said.

Half of all mobile device owners use applications, according to a CEA study, with communications, weather, maps, music, news, games and social networking among the most popular.

"We'll see a lot more shopping apps," said Ben Arnold, CEA's senior research analyst. "Apps that empower consumers."


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