CEA Projects Flat Revenues for 2009

LAS VEGAS, January 9: The
consumer electronics industry is projected to generate $171 billion in U.S.
shipment revenues in 2009, according to the semi-annual industry forecast
released by the Consumer Electronics Association (CEA), down just slightly from
2008.

The industry continued to
grow in 2008, despite the economic downturn, with a final estimate of shipping
revenues at an all-time high of $172 billion, an increase of 5.4 percent over
the year prior.

DTV continues to be a
primary driver for the industry, representing 15 percent of the total shipping
dollars. As the analogue switch-off date nears, unit shipments of digital TV
displays will approach 35 million in 2009, a 6-percent increase from last year.
LCD displays remain the top choice among consumers, accounting for 77 percent
of total DTV units.

Blu-ray players are
expected to see major growth in 2009, due in part to more content, new products
and lower prices. Revenues from Blu-ray are forecast to reach more than $1.2
billion.

Gaming also looks to hold
on to its strong position in the consumer-electronics industry, and is expected
to grow by 11 percent, generating nearly $22 billion in revenue. Gaming
software revenues are projected to increase 18 percent to nearly $15 billion.

The updated
sales and forecast report also shows consumers are turning to smartphones as
their mobile phone of choice. Smartphone revenues will continue to grow this
year, increasing nearly 20 percent to $13.6 billion. As carriers increase the
speed of their networks and offer new services, smartphones will account for
more than 60 percent of total handset revenues.

"TheCE industry is
resilient but not immune from the business cycle," said CEA's president
and CEO, Gary Shapiro, in his opening remarks at the 2009 International CES.
"In a tough economy our products offer high value for entertainment and an
entry point for entrepreneurs creating new businesses. Innovation will kick
start the economy. The 2009 International CES is a cause for optimism, with
some 20,000 new products and 300 new exhibitors."

Added Steve
Koenig, CEA's director of industry analysis: "Consumers continue to seek
the best picture, sound and entertainment experience available. With a majority
of U.S. homes owning an HDTV, consumers are looking to add high-definition
content through Blu-ray players, gaming devices and home audio systems."

—By
Kristin Brzoznowski