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Report: CE Output to Drop 6.4% in 2009

Published: 02 February 2009
 by Administrator
LOS ALTOS, CA – Consumer electronics output will drop 6.4% in 2009 on a lack of compelling new products coupled with the dismal economic environment, says Henderson Ventures.
 
This after rising an anemic 1.7% in 2008, Henderson says.

Excess inventories from the 2008 Christmas selling season will also be a drag on sales. Cellphones and computers will be exceptions, adds the firm. Also, game consoles are likely to achieve a gain of 10% this year. 
 
Global vehicle production fell 3% in 2008. US output plummeted 19.8% and West European production was down 10.3%. Even though electronics content is steadily rising in cars and trucks, cost containment is a major issue among auto OEMs, says Henderson. Consequently, automotive electronics output managed only a thin 0.4% increase in 2008, versus a 10.1% surge in 2007.

This year, the combination of slumping vehicle demand and even more intense price pressure will drive down automotive electronics production 5.7%, but an accelerating industry recovery will take growth rates to 8.7% in 2010 and 12.3% in 2011, as vehicle obsolescence and pent up demand lift industry prospects, according to the firm.
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