A new report from market research firm iSuppli details that US spending is healthy and rising in the consumer electronics category, particularly for digital TV's and gaming consoles.
Digital TV shipments are expected to reach near 140 million units this year, up from 117.7 units seen in the previous year. Game console OEM manufacturing revenue grew by 85% from 2006 to 2007, increasing another 19% in the first quarter of 2008.
But are electronics purchases replacing vacations? iSuppli seems to think so. They attribute the steady growth in consumer purchases to an unpredictable economy, which they say has resulted in less travel and more spending on home entertainment and CE products. Other growth factors suggested include falling TV prices, the analog broadcast turn down, improved TV picture quality, an increased amount of high definition content and the flat panel form factor.
With gas and travel prices soaring this year, I can understand why some consumers would opt for a 'stay-cation' rather than packing their bags. Whatever the reasons are, the CE companies are certainly benefiting from this increased spending.
