Worldwide shipments of LCD TVs surged to 1.3 million units in Q4 2003, up 23% from Q3, according to from iSuppli/Stanford Resources. The market research firm said plasma TV shipments rose 5% QTQ to 358,449 units, and overall TV set shipments hit 44.7 million units, up 12% from Q3. Most televisions shipped in the quarter were traditional CRT (cathode-ray tube) models.
Sales of integrated Digital Video Recorders (DVRs) will grow from 930,000 in 2002 to nearly 28 million by 2008, according to Strategy Analytics. Starting from 2002, the market will grow at an average annual growth rate of 59% through 2008, when there will be a total of 71.5 million integrated DVR users.
Strategy Analytics reports that 70,000 high-definition TV (HDTV)-capable displays were purchased in 2003 in Europe. The research firm expects that demand for these sets will grow over the coming years, with 17.4 million European households owning HDTV-capable TV sets in 2008. Strategy projects that 2.6 million – or roughly 15% of all HDTV-capable households, as extrapolated by eMarketer – will actually have HDTV.
Satellite customers are almost twice as likely as cable customers to own personal video recorders (PVRs), such as Tivo and ReplayTV, according to a survey conducted in January by Ipsos-Insight. Ipsos-Insight interviewed 973 adults from 16 to 19 January via telephone, from a nationally representative sample of 1,000 US adults ages 18 and older. It found that for the overall US population, the penetration rate for DVRs is 5.8%. Cable subscribers came in slightly below this rate at 5.6%, and satellite subscribers high above it at 11.4%.
DVD recorders are expected to slowly take over for DVD players, in standalone products as well as in combination products such as DVD+VCR, DVD+HTiB, and TV+DVD, reports In-Stat/MDR/ In 2004, the first DVD recorder combination products are entering the market. There are several DVD recorder+VCR and Home Theater in a Box (HTiB)+DVD recorder systems scheduled to ship in 2004. The high-tech market research firm finds that in 2003 alone, DVD recorder unit shipments increased over 200%, as more manufacturers entered the market and the prices declined. As more products come on to market, over 50 million DVD recorders are expected to ship worldwide in 2007.
“However, there is still a lot of life in the DVD player market,” says Michelle Abraham, a Senior Analyst with In-Stat/MDR. “Automotive DVD systems and portable DVD players are expected to grow over 30% annually for the next five years. In addition, while households in Europe, North America, and Japan will convert to DVD recorders, markets like China will continue to consume DVD players.” DVD player unit shipments in 2003 were 98 million units and will top 100 million in 2004. The total market will then begin its decline in 2005, though the portable and automotive segments will still continue to grow.
In-Stat/MDR also reports that:
- DVD players are commonly available in Europe and North America for less than $50. By 2007, prices will be under $30 on a regular basis.
- DVD recorder prices will drop below $199 for the holidays in 2004. Besides hard drives, step-up features on DVD recorders will include Electronic Program Guides (EPGs), and network connections in 2004, with DTV tuners and DVD-Audio and SACD playback added in 2005.
- Blue laser player/recorders will become mainstream products, but not before 2008. The two competing blue laser formats will finalize their read-only formats in 2004, so In-Stat/MDR expects more product introductions in 2005.
Patterns of consumer electronics sales in the United States. Sales are shown in millions of dollars.
|Type of device||1990||1995||1997||1998||1999||2000||2001|
|Home fax machines||920||919||1,137||647||455||387||349|
|Standard color TV||6,197||6,798||6,023||6,122||6,199||6,140||5,130|
|Video game hardware||975||1,500||1,650||1,980||2,250||2,700||3,250|
|Video game software||2,400||3,000||3,900||4,480||5,100||5,850||6,725|
|Blank audio cassettes||376||334||281||248||208||162||106|
|Blank computer media||314||373||500||700||900||1,200||1,550|
Over 70% of households with broadband lines picked out consumer electronics brands over their PC counterparts, in Parks Associates’ Broadband Networked Households project. Over a half of them (51%) picked Sony as their brand of choice for any device, which would store and distribute content to networked devices within the home.
Ipsos-Insight reports that 70% of US adults know what digital video recorders (DVRs) and 48% are familiar with the popular brand of DVR, TiVo. Specifically, notes Ipsos, the awareness of DVRs is highest among satellite TV subscribers – 76% say they are familiar with DVRs. Interestingly, while 63% of US adults think that DVRs are easy to use and 32% think the price of DVRs is reasonable.
The worldwide digital radio
market, both satellite and terrestrial, will grow to over 19 million
unit shipments in 2007, reports In-Stat/MDR. The
high-tech market research firm believes that new content (stations that
only exist in digital) and data services will drive consumer demand for
radios. These factors are already at work in the digital satellite radio
arena in the US and the digital terrestrial market in the UK.
Several hundred million analog radios are sold worldwide each
year, in the form of stereo receivers, CD boom boxes, portable devices,
alarm clocks, and car stereo systems. Reductions in the cost of digital
tuners will convert the more expensive of the analog radios to digital
by the end of 2007.
The Big Research January survey polled over 9,500 consumers. Of those, 84% said they considered plasma televisions ‘hot’ in 2004, while 80% said the same about picture cell phones. In the same sample, shopping at discount stores was also seen as ‘hot’ by 80% of respondents, while 67% said so about shopping at dollar stores. Of those surveyed who labeled plasma televisions and picture cell phones as ‘hot,’ 28% shop most often for electronics at Best Buy and 23% do so at WalMart. Circuit City ranked third among those buyers at 10%.
Low carbohydrate diets were another ‘hot’ item among consumers; 72% of consumers thought so, while 28% disagreed. But the recent trend toward brightly colored merchandise appears to be waning. Brightly colored apparel was seen as ‘hot’ by 53% of those surveyed; 47% disagreed. Brightly colored housewares had 49% of the votes for ‘hot’ while 51% said no.