MP3 Players, Digital Cameras Lead Household CE Growth

Consumer electronics (CE) products are more prevalent than ever, as the average U.S. household now owns 26 non-discreet CE products, up from 25 in 2005, with MP3 players and digital cameras leading the growth, said a report from the Consumer Electronics Association (CEA) released today. CEA found that analog is giving way to digital technologies across the board, identifying the top five CE growth sectors as MP3 players, digital cameras, car video entertainment systems, in-dash CD players and notebook PCs. CEA reported that the average U.S. household spent $1,200 on CE products in the past 12 months. "With the overall CE industry expanding 11 percent on a revenue basis in 2005, it is understandable that the household penetration of a handful of categories responsible for driving this double-digit revenue growth have gained momentum over the past year," said Sean Wargo, CEA director of industry analysis, in a statement. Wargo noted the MP3 player was the top growth sector with a household penetration of 25 percent in January of 2006, up 10 points from 15 percent in January 2005. He also said the MP3 player was the only category to have tripled growth in a year, with 8 million units shipped in 2004 and more than 25 million shipments in 2005. CEA anticipates 30 million units to ship this year. Other top growth categories included the digital camera, up eight household penetration points from 49 percent in 2004 to 57 percent in 2005; car video entertainment systems, up six points from nine to 15 percent; the in-dash CD player, up five points from 57 percent to 62 percent; and notebook PCs, up four points from 30 percent to 34 percent. In addition to listing the top growth categories, CEA’s report revealed the five most owned products, led by TVs at 95 percent household penetration, followed by VCRs at 87 percent, cordless phones at 85 percent, DVD players at 81 percent and wireless phones at 78 percent. "CEA estimates the current installed base of cell phones is nearly 182 million units with an average of more than two wireless handsets per owner household," said Wargo. "Close behind the wireless phone is the PC; three in four households now own either a desktop or notebook PC. Portability is playing a larger role in computing as evidenced by the fact that notebook ownership improved four points to 35 percent of households." The report also stated that satellite radio ownership reached 10 percent of households as aggregate Sirius and XM subscribers breached the 10 million mark.