Electronics sales to grow by $10 billion during U.S. holiday shopping season

Not long ago , research firm NPD Group released its sales forecast for the US consumer electronics industry this year .

NPD Group predicts that the U.S. consumer electronics industry will generate more than $ 113 billion in revenue this year , up 7% from 2020. For the holiday shopping season, which everyone is most concerned about , NPD Group predicts that the consumer electronics industry 's sales during this year's holiday shopping season will increase by $5 billion compared to 2019 and $1 million compared to 2020.

Specifically for products, NPD pointed out that the top five categories of headphones , laptops, smartwatches, tablets and TVs will account for 55% of the industry's revenue , up from 44% in 2017 and 54% last year. TVs are expected to account for 20% of revenue, followed by laptops (17%), headphones (9%), tablets (7%) and smartwatches ( 4%).

According to NPD's forecast, "consumers have enough income to support a strong holiday sales season ." The forecast points out that Americans will continue to receive money from the child tax credit and stimulus package, home prices have risen sharply, and credit card debt has fallen. With these factors combined, consumers are expected to see a sharp increase in purchases of electronic products .

The epidemic has increased the demand for electronic products. Stephen Baker, vice president and industry consultant of NPD, pointed out that the industry has shown year-on-year growth for five consecutive quarters. Baker also said that even if the epidemic is over, it does not mean that consumers will stop buying electronic products. This is because consumers have become accustomed to using these electronic products at home, such as watching TV, playing games, browsing mobile phones, and printing pictures.

Although the demand in the market has not decreased, higher prices will still discourage some consumers from purchasing. In fact, the sales of the electronics industry have achieved a 7% growth this year, partly due to the increase in its average selling price. NPD predicts that sales of categories such as TVs, network equipment and printers will decline in the second half of the year. The revenue of the entire industry will decrease by 7% and 4% year-on-year in 2022 and 2023, respectively, to US$105.7 billion and US$101.2 billion.

Baker noted that “the higher-than-expected ASPs ( average selling prices) we are seeing in the market today can be attributed to increased shipping costs, component shortages, and a lack of promotional activity . ”

Electronics

Holiday Shopping Season

US Market