Consumer Electronics 2005 Holiday Shipment Revenues to Increase Nine Percent, Projects CEA; MP3 Players Top Consumers' Shopping and Wish Lists, Finds 12th Annual Holiday Spending Survey

Business Wire, Oct 17, 2005

LAS VEGAS -- Revenues from sales of consumer electronics (CE) are expected to increase nine percent during the upcoming holiday shopping season, show the results of a new survey presented today by the Consumer Electronics Association (CEA(R)). The survey results were revealed during CEA's 2005 Industry Forum, a technology leadership, education and networking event being held in Las Vegas, October 17-19. CEA Director of Industry Analysis Sean Wargo shared top-line results from CEA's 12th Annual Holiday Sales and Forecast survey during a presentation delivered here this morning. Based on the survey, CEA is forecasting that overall holiday spending will increase 14 percent per average household (from $1,254 to $1,430) over 2004, , factoring in gifts, decorations, food, travel and other assorted holiday expenses.

"Peace, happiness, health - and consumer electronics - are on the wish lists of Americans this holiday season, according to our forecast survey," Wargo said. "Despite concern about the overall economy, consumers intend to purchase, as well as hope to receive, a plethora of consumer electronics gifts this holiday season. More, our survey indicates that retailers and consumers alike will be humming a happy tune entering the New Year, as results show the MP3 player is going to be one of the hottest sellers."

CEA's Annual Holiday Spending Survey tracks the consumer electronics devices consumers intend to give as gifts, as well as those they hope to receive. The MP3 player topped both lists this year displacing the digital camera at the top of the gift list and the plasma TV at the top of the wish list from last year's survey. According to the 1,000 randomly selected U.S. adults CEA interviewed by phone, consumer interest in buying a portable MP3 player has increased eight percentage points from 2004, from 20 percent to 28 percent. Revenues from sales of MP3 players are up 105 percent so far this year, according to CEA Market Research.

For the second year in a row, CEA also surveyed CEA|CNET Tech First Panel participants for the holiday study in order to determine the holiday gifting intentions of technology early adopters. The study was administered via the Internet to an online sample of CNET users who were screened as people who adopt consumer electronics products in the early to mid-product life cycle stages. The CEA|CNET Tech First Panel sheds light on the thoughts, behaviors and desires of the first consumers to buy technology products. Their interests and behaviors are often precursors to future mass market trends. The MP3 player topped their list for gift giving, as well. Fifty-seven percent said they are likely to purchase an MP3 player this season to give as a gift. Other top early adopter gift-giving items included a digital camera, internal PC upgrade, video game system and home networking devices.

Following the MP3 player, the full wish list for the randomly selected survey respondents included, in order of preference: plasma television, digital camera, laptop PC, big screen TV, desktop PC, video game system, high-definition television, DVD recorder and home theater speakers or system. The gift-giving list included: portable MP3 player, digital camera, video game system, cordless phone, home DVD player, portable headset CD, game peripherals, DVD recorder, cell phone and laptop PC.

CEA's holiday survey also found that consumer interest in purchasing gift certificates continues to grow reaching 32 percent this year - up two points from last year. The intention to buy gift certificates is four times higher than the planned gift purchase of any individual CE category.

When adult consumers were asked what they wanted most, CE products followed peace, happiness and good health; conversely, when youth consumers were asked what they wanted most, they listed CE products first with video games leading the inventory.

CEA's 12th Annual Holiday Sales and Forecast survey was designed and formulated by CEA Market Research, the most comprehensive source of sales data, forecasts, consumer research, international research and historical trends for the consumer electronics industry. This survey will be available for purchase by non-members at www.ce.org/store.> About CEA:

The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the consumer technology industry through technology policy, events, research, promotion and the fostering of business and strategic relationships. CEA represents more than 2,000 corporate members involved in the design, development, manufacturing, distribution and integration of audio, video, mobile electronics, wireless and landline communications, information technology, home networking, multimedia and accessory products, as well as related services that are sold through consumer channels. Combined, CEA's members account for more than $121 billion in annual sales. CEA's resources are available online at www.CE.org, the definitive source for information about the consumer electronics industry.