PC World: The future for consumer electronics looks bright and high oil prices will help the industry, according to Hans-Joachim Kamp, who spoke at IFA in Berlin last Wednesday.
“Because of high oil and gas prices, we will again see a cocooning effect,” said Kamp, CEO of Philips in Germany, Austria, Switzerland.
“Instead of spending money on expensive vacations abroad, consumers will spend their money at home, buying, for example, flat-screen TVs”, he said. Price erosion has made it possible for almost everyone to upgrade, and there is still a large untapped market.
“There are still 170 million old CRT TVs in Europe,” said Kamp.
But some of the numbers don’t look that good; the overall market in Western Europe is expected to shrink by 2.4 percent during 2008. The reason for that is mainly a weak market in the U.K. The U.K. consumer electronics market value shrank by 11 percent during the first half of 2008.