TWICE: The global CE market won’t achieve annual revenue growth this year, according to a new iSuppli report. Although the global consumer electronics market returned to sequential revenue growth in the second quarter, the industry this year will not achieve an annual expansion that would signal a true recovery, the research firm said.
Global CE equipment revenue rose to $71.1 billion in the second quarter, up 4.2 percent from $68.3 billion in the first quarter, based on a preliminary iSuppli estimate. This represents a major improvement from the first quarter, when revenue fell by 25.8 percent compared with the fourth quarter of 2008.
While consumer electronics revenue typically declines on a sequential basis in the first quarter following the fourth-quarter holiday selling season, this represented a particularly sharp decline.
“Following the dismal first quarter, conditions are starting to improve in the consumer electronics business,” said Sheri Greenspan, consumer electronics senior analyst for iSuppli.
“Revenue will continue increasing on a sequential basis in the third and fourth quarters, rising by 12.5 percent and 10.2 percent. While this growth is encouraging, 2009 will still be a down year for the industry.”
iSuppli predicted global consumer electronics equipment revenue will decline to $307.6 billion in 2009, down 8.2 percent from $335.2 billion in 2008, due to the impact of the worldwide economic downturn as well as sharply declining prices for key products.