Global Consumer Electronics Manufacturing Market Research Report

The global economy presents its own set of opportunities and threats for businesses in a range of industries. IBISWorld’s Global Consumer Electronics Manufacturing global market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies globally and offers strategic industry analysis of the key factors influencing the market.

Industry Analysis & Industry Trends

Demand for consumer electronic products has been promoted by new innovative products, falling selling prices and growing household incomes, particularly in emerging markets such as countries in Asia, Eastern Europe and South America. However, market saturation is now becoming an issue and industry players need to continually innovate and introduce new attractive products. In 2012, the Global Consumer Electronics Manufacturing industry is expected to generate revenue of $215.6 billion (down 0.2% on 2011) and employ about 2.1 million people.

Industry revenue is expected to decrease by an annualized 0.9% in the five years through 2012. Industry activity over this period is promoted by growth in sales volumes, albeit offset by a decrease in average unit selling prices.

Industry Analysis

 

The release of new gadgets coupled with falling unit prices has driven stellar growth in sales volumes in this industry. However, a rapid decline in selling prices for comparable products, driven by industry competition and falling input and manufacturing costs, has negatively affected revenue growth. Firms have responded by focusing on selling products with enhanced features to drive-up unit selling prices.
Industry revenue is expected to decrease by 0.2% to reach $215.6 billion in 2012, due to product saturation in some markets, slower growth in global economic activity and price deflation. This will contribute to estimated annualized decrease in industry revenue of 0.9% in the five years through 2012.

Source: IBISWorld

http://www.ibisworld.com/industry/global/global-consumer-electronics-manufacturing.html

 

All-in-One PC Shipments to Outpace Traditional Desktop PCs with Double-Digit Growth

With their shipments projected to surge this year and beyond, all-in-one (AiO) PCs will help prop an ailing market for overall desktop PC systems, according to the IHS iSuppli Compute Platforms Service at information and analytics provider IHS (NYSE: IHS). 
 

Shipments of AiO PCs are forecast to reach 16.4 million units this year, up a robust 20 percent from 13.7 million units last year. In comparison, worldwide growth of traditional desktop PC shipments in 2012 will amount to a dismal 0.2 percent—rising from approximately 132.0 million units to 132.3 million units.

The healthy pace of growth for AiO PCs will continue in the years to come. By 2016, shipments will hit an estimated 24.8 million units, equivalent to a five-year compound annual growth rate of nearly 13 percent, as shown in the figure below. The fast-growing AiO space may, in fact, save the overall desktop segment—already battered by competing consumer devices, like smartphones, media tablets and even mobile PCs such as laptops and Ultrabooks—from going into further decline, IHS iSuppli believes.

 

Unlike traditional desktop PCs that comprise a separate monitor, system base unit and power cable, all-in-one PCs utilize a different form factor—one that integrates the display and base unit into a common chassis, with the power cable permanently attached to the entire mechanism. AiO examples on the market today include the iMac range of products from Apple Inc., as well as the TouchSmart series of PCs from Hewlett-Packard Co.

“The AiO PC is especially appealing to consumers that have been waiting for a desktop-monitor combo that not only combines the strengths of a traditional desktop system but also offers a few more extras typical of the new versatile devices, such as a flexible form factor, a large screen size and touchscreen optical technology,” said Craig Stice, senior principal analyst for compute platforms at IHS. 

For instance, AiO PCs no longer need to be bound to a computer desk but can fit into a variety of environments—including on a wall, from where the devices can be hung—bringing about new user experiences in the process. Some models also offer a TV tuner option that allows the PC to function as both a personal computer and a television.

Often AiO PCs also come with larger screen sizes, with 22-inch screens being the average. 

Many larger systems offer high-definition (HD) specifications, including HDMI inputs and outputs, options for 3-D, and high-end sound systems.

Most AiO systems also employ optical technology with sensors within raised bezel edges that will track touch in a typically two-touch or point-and-touch screen. A more tablet-like experience with multitouch or swipe capabilities could likewise be possible when Microsoft launches its new Windows 8 operating system later this year.

Pricing for AiO systems is now comparable to standard desktops—anywhere from less than $500 for a modestly packed system with a 20-inch screen, up to nearly $2,000 for a fully loaded high-end system.

Still, AIO systems have their drawbacks. The PCs cannot be customized with additional or upgraded hardware as easily because of the more enclosed environment and space constraints within the system, and the all-in-one form factor that makes them unique also makes the machines hard to repair. As a result, their product life cycle is shorter than that of the traditional desktop PC, and the total cost of ownership also comes out higher.

Apple was No. 1 last year in AiO shipments, with 28 percent share of the market, followed by Lenovo, Dell, HP and Sony. The largest original development manufacturer for Aio PCs was Quanta Computer of Taiwan, whose clients include Apple, Lenovo and HP. Pegatron and Wistron, also from Taiwan, were other important manufacturers of the machines.

Source: IHS iSuppli

http://www.isuppli.com/Home-and-Consumer-Electronics/News/Pages/All-in-One-PC-Shipments-to-Outpace-Traditional-Desktop-PCs-with-Double-Digit-Growth.aspx

Consumer Electronics Revenue Growth to Start Slowing by 2015

Despite continuing climb in production, falling prices will eventually exact their toll


The rise in factory production during the next two years of consumer electronic (CE) goods such as flat- panel TVs and video game consoles won’t be enough to keep overall CE manufacturing revenue from finally reaching a plateau by 2015, due largely to the continuous freefall of CE equipment prices, according to an IHS iSuppli Consumer Platforms market tracker report from information and analysis provider IHS.
While both factory production and industry sales will climb steadily for the next three years, growth will slow perceptibly on the revenue end of the equation for the CE industry between 2014 and 2015. 

 CE revenue in 2015 will amount to $294.5 billion, up a scant 0.1 percent from a projected $294.2 billion in 2014.Such marked stagnation is in contrast to the relatively vibrant 8.4 percent increase enjoyed by the industry during 2010, when revenue reached $271.4 billion, up from $250.3 billion in 2009.

This year, CE revenue is forecast to hit $283.9 billion, up 1.4 percent from $280.1 billion in 2011. This means that growth for 2012 will be less than half the 3.2 percent expansion rate seen last year.

CE factory production, meanwhile, will grow from 1.13 billion units this year to 1.18 billion units by 2015. The rate of increase for CE factory production between 2014 and 2015 is approximately 1 percent—small by any accounting, but still much better than the negligible uptick in CE revenue during the equivalent period.
The eventual flattening of CE revenue by 2015 is because of the enormous price pressure constantly brought to bear on consumer electronics gear and equipment. Although CE unit volumes are increasing at the moment so as to outweigh the deleterious effect of price declines, the continuous reduction of CE prices in the marketplace will ultimately take its toll in a few years.

An example is the Apple TV digital media adapter that allows consumers to access over-the-top con- tent from the Internet, such as that provided by Netflix or Hulu Plus, for viewing at home. Initially priced at $299 when it was introduced a few years back, the price of the second version of Apple TV, which debuted in 2010, dropped to a much more consumer-friendly $99.

Other types of CE equipment have also seen dramatic declines cut into their pricing and reduce margins in the process, even as functionalities for the devices continue to improve. Ebook readers, for instance, are sold at almost their bill-of-materials cost, or even less as suppliers such as Amazon look to media sales for their profit. Digital picture frames, digital still cameras, MP3 players, video game consoles and handheld game players have likewise become increasingly affordable.

Despite the foreshadowing of a slowdown in a few years’ time, the CE market today continues to enjoy a measure of success and laudable growth, especially in fast-growing categories.

For instance, factory production this year of liquid crystal display televisions (LCD TVs) is set to grow 7 percent, to 227.6 million units. Blu-ray players will top 43.0 million units, essentially coming into parity with DVD players. Ebook readers, notwithstanding their near-nonexistent margins, will still grow
40 percent to more than 28.0 million systems.  

Set-top boxes will remain comfortably above the 100 mil- lion-unit level. And if one went beyond the traditional fields of consumer spending above and extended the categories to include smartphones, mobile PCs and media tablets, those devices can be expected to also drive the more broadly defined CE markets to higher levels of growth.

Among CE semiconductor manufacturers, the potential for disruptions in the supply chain because of shortages in raw material appears to have finally abated. Meanwhile, the quest by consumers for ever- expanding functionality in their CE gear is likely to translate into continued growth in demand for CE semiconductors.

Semiconductor revenue for the CE space is anticipated this year at $30.3 billion, up 1.6 percent from $29.8 billion in 2011.



Source: IHS iSuppli 
http://www.isuppli.com/Home-and-Consumer-Electronics/MarketWatch/Pages/Consumer-Electronics-Revenue-Growth-to-Start-Slowing-by-2015.aspx

It’s Now 4K after 3D!

Just when world thought that it could not get any better than HDTV, there is a new technology
that is about to change the way humanity experiences home entertainment. Here is the 4K – the
current digital cinema format that offers four times the image quality of HDTV.

With most of the users having settled in with their 1080P televisions and are enjoying high
definition which is indeed much better than the old standard definition TV’s/VCR’s of 240/480i
resolution, television manufacturers will now bank on a better technology called 4K HDTV.

Since there is not enough content in 3D and people do not like wearing silly glasses for prolonged
periods, there has always been a scope for upgradation in the technology. With more than
four times the resolution of HD which translates to more pixels through a reproduction of better
contrast, 4K is ultimately a more immersive experience than anything possible before. Usually,
the closer user gets to a TV, the harder it is to see the detail but with these 4K prototypes it was
like looking at a printed photograph.

Television manufacturers, ever eager to shore up their business with new technology, are gearing
up to roll out sets with 4K screen resolution. The 4K HDTV prototypes from Sony, LG, and
Toshiba shown at the Consumer Electronic Show (CES) this year revealed stunning images and
video that can be appreciated with the naked eye. Sharp had even an 8K HDTV prototype on
display at CES, a good sign that the 4K future and beyond is brighter and in clearly in focus.

4K TVs should start to hit store shelves in the United States by the end of 2012.While there has
been a number of precedent setting developments, none are likely to rival the entry of the 4K TV
technology in terms of superiority of features and performance.

Being the latest in a series of high definition standards, the 4K is primed to replace the 1080i/p
standard. It is so named from the fact that it offers a resolution of 4000 pixels horizontally while
its vertical resolution is around 2000 pixels. This makes it about the equivalent of 4 full HD 1080p
screens in terms of vertical and horizontal resolution.

With 8.3 million pixels versus the 2 million, 4K will create some of the most vibrant imagery ever.
If one had the chance to see Avatar in theaters, he probably would not be surprised to learn that
it was shot in 4K and displayed using 4K Sony Projectors. For the 2012 Olympic Summer Games
in London, 4KTVs will be globally unveiled in some key cities such as Washington DC to provide
live coverage of the games.

Having this many pixels means that there will not be the typical primary colored gaps that can
be viewed when standing close to a 1080p TV. 3D will become exponentially incredible as well.
4KTV will create the most immersive experience ever, as exhibited by its Avatar application. This
is not the only major upgrade bundled with the 4KTV as various companies aim to incorporate
other ease-of-use features such as voice recognition and gesture control similar to the Microsoft
Kinect.

Although electronics manufacturers have not yet settled on a standard, 4K resolutions generally
have at least 7 million pixels arranged across about 4000 columns and 2000 rows. All those extra
pixels allow 4K televisions to display images in much finer detail than HDTVs.

The development of the new standard was mainly for the big screen or cinema for the uninitiated.
It is roughly 4096×2160 pixels on the main as there is no definite standard pixel dimension. Some
screens are actually only 3840×2160 pixels, what is known otherwise as QFHD (Quad Full High
Definition) displays. The higher 4,000-plus pixel horizontal displays are the true 4K standards.

While the 1080p standard lead to a virtual revolution in the world of big screen movies, it is still
possible to see the actual pixels while sitting on the front row at the movie theater. This can be
quite distracting and many people find it as a definite turnoff. With that in mind, the new standard
was a necessity for the movie industry.

At a close viewing range, HD video on a big screen can look pixilated, and colors and images can
blur into the background. By contrast, 4K video looks super sharp. Home entertainment systems
just got a new shot in the arm with the arrival of 4K TV display technology. Although this has
been a huge success in the commercial movie industry, this is more than can be said of the home
entertainment.

Despite the buzz 4K has created, there are some concerns that need to be addressed. The new
TV’s will obviously be very expensive (as is all new technology), and users will need to go to a
fairly large screen to get the full benefit of this enhanced high definition display. The other thing
that likely will give consumers pause is the paucity of 4K content. Consumer have a hard enough
time finding 3D content to view, but they will have more difficulty finding anything at all in 4K.

It is indeed a very exciting time in terms of television technology. The sets and technology are
getting better with each generation and sets are now very much a major part of today’s modern
living. Manufacturers are getting much better at giving consumers what they want and new
features such as better dashboards and navigation menus combined with nice to have controls
such as gestures, voice control, and face recognition will soon become minimum standards for
most families. 4K being the newest kid on the block has also created much excitement but it is
still in its infancy. The success of the technology will actually be decided after it will be available
for the consumers later this year.