This year's consumer electronics industry revenue growth is weak

In the global economic downturn, as the brand manufacturers focus on low-cost strategies to attract buyers in the holiday season, it is expected that in 2012, the global consumer electronics market revenue will grow by only 1.3%, showing a slight increase.

According to IHS iSuppli's home and consumer electronics services, global consumer electronic original equipment manufacturer (OEM) plant operating revenue will increase from $356 billion in 2011 to $361 billion this year. In the fourth quarter of this year, operating income is expected to be 99 billion US dollars, an increase of 2.2% over the 96 billion US dollars in the same period in 2011. The fourth quarter includes the holiday sales season starting from Black Friday. Figure 4 shows IHS's estimates of consumer electronics revenue for each quarter of 2011 and 2012.

Due to the economic downturn and the lack of pleasing new products, electronic product manufacturers currently have no choice but to reduce prices to attract buyers. Although consumer electronics makers and retailers will always launch preferential products on Black Friday, this year's price cuts may be particularly large. The result will be a slight increase in the operating income of consumer electronics manufacturers in 2012.

IHS iSuppli believes that this is especially the case when consumers seek bargains during times of economic downturn. Therefore, in 2012, the consumer electronics industry will generally focus on optimization rather than innovation. Consumer electronics manufacturers have not introduced new products or major new features, but are improving their existing products, reducing their size and increasing their power efficiency, and most importantly, reducing their costs.

It is true that consumer electronics manufacturers are introducing a small number of innovative new products, such as large-size 4K and OLED TVs. However, due to their high prices, these products will not have much sales this year.

Where will growth come from? Although overall consumer electronics revenue will increase in 2012, most of the growth will come from only a few product areas, and revenue in most areas will decline.

Revenues expected to shrink in 2012 include Plasma TVs, Rear Projection TVs, Analog CRT TVs, Gaming Machines, Digital Cameras, DVD and Blu-ray Disc recorders, Portable Media Players and MP3 Players, Personal and Portable Audio, Home Audio System Components , video cameras and e-book readers.

The increase in operating revenue will come mainly from the LCD TV sector. Although unit shipments are expected to decline, LCD TV revenue will grow this year. The average sales price of multi-function TV models sold in early 2012 will be higher, which will drive the increase in operating revenue this year.

Other areas that are expected to expand significantly this year include digital set-top boxes and home appliances.