CE Market Has Plunged Claims GfK
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The sales value of the CE market in Australia has plunged according to research group GfK. However it does claim that the next few periods will be steady. Holing up the market is flat panel TV sales which account for nearly half of all CE sales.

According to GfK Australians are on track to spend a record $5 billion dollars on digital devices by the end of 2007. Some $2.1 billion will be spent between January and June suggesting a big finish to the year, especially over the Christmas period.

However GfK warns all is not completely rosy in the consumer electronics world. Sales growth has plunge a way below the rate recorded in previous reporting periods.

Total sales in H1 2007 were up only $200 million, or 10 percent, on the same period of last year – in contrast to 43pc growth in H1 2005 and 41.7pc in H1 2005.

And sales value actually dropped by around $300 million, or 12 percent, compared to the second half of 2006, largely due to continuing price drops.


Product categories showing growth in the latest report include media players (eg, iPods), game consoles, digital still cameras and multi-functional devices. But sales were down for DVD players, video cameras, inkjet printers and photo printers.

“The majority of Australian households now own a digital still camera and DVD player, causing category growth to slow as these products are now mainly purchased as upgrades and not as the first household purchase,” commented GfK’s David Griffin, who authored the report.

In the “image and print” sector, inkjet printer sales were down 42 percent, photo printers dropped 35.6 percent and digital camcorders were down 3.3 percent. But multi-function devices were up 16.6 percent. Among Companies likely to be hit by the slow down in inkjet printer and digital camera’s is Canon who operate across both markets. While Canon is reporting increased sales they refuse to reveal profitabilty for the two markets.


Flat panel TVs are where the money is, accounting for more than half (52 percent) of all spending on the index product categories. LCD TVs have overtaken plasmas, making up a third of sales value (32 percent). GfK attributes this dominance in part to the wider range of screen sizes available for LCD TVs.

Other big sellers were digital still cameras ($293.7 million); media players ($175 million); games consoles ($149.2 million), camcorders ($107 million) and DVD players ($107 million).

The index is compiled by GfK using information provided by GfK’s retail audit panel.