Average U.S. Household Now Owns 26 Consumer Electronics Products, Finds CEA's Annual Ownership Study; Study Identifies Top Five CE Growth Sectors as Analog Gives Way to Digital

Business Wire, March 31, 2006

ARLINGTON, Va. -- Consumer electronics (CE) products are more prevalent than ever with the average U.S. household owning 26 non-discreet CE products (up from 25 in 2005) and spending $1,200 on CE products in the past 12 months, according to data released today by the Consumer Electronics Association (CEA(R)). CEA's annual CE Ownership and Market Potential Study also found that analog is giving way to digital technologies across the board, identifying the top five CE growth sectors as MP3 players, digital cameras, car video entertainment systems, in-dash CD players and notebook PCs.

"America's love affair with consumer technology products continues," exclaimed CEA President and CEO Gary Shapiro. "Consumers across the nation recognize that digital products enhance the way we all work, live and play. Digital products are cool and the CE industry remains hot."

"With the overall CE industry expanding 11 percent on a revenue basis in 2005, it is understandable that the household penetration of a handful of categories responsible for driving this double-digit revenue growth have gained momentum over the past year," said CEA Director of Industry Analysis Sean Wargo. "The MP3 player certainly tops the list with a 10 point gain in household penetration from 15 percent in January of 2005 to 25 percent in January of 2006. This is the only category to have tripled growth in a year. Eight million units shipped in 2004 and shipments surpassed 25 million in 2005. We anticipate an additional 30 million will ship this year, which puts MP3 right up there with televisions."

Wargo noted that other top growth categories included the digital camera - up eight household penetration points from 49 percent in 2004 to 57 percent in 2005; car video entertainment systems, up six points from nine to 15 percent; the in-dash CD player, up five points from 57 to 62 percent and notebook PCs, up four points from 30 to 34 percent.

In addition to calling out the top growth categories, the study revealed the five most owned products, led by televisions at 95 percent household penetration, followed by VCRs (87 percent), cordless phones (85 percent), DVD players (81 percent) and wireless phones (78 percent).

"CEA estimates the current installed base of cell phones is nearly 182 million units with an average of more than two wireless handsets per owner household," Wargo said. "Close behind the wireless phone is the PC; three in four households now own either a desktop or notebook PC. Portability is playing a larger role in computing as evidenced by the fact that notebook ownership improved four points to 35 percent of households."

The report includes favorable findings for satellite radio, as well. Satellite radio ownership reached 10 percent of households as aggregate Sirius and XM subscribers breached the 10 million mark.

"This is a milestone for this technology," Wargo concluded. "It cements the idea that consumers are receptive to the idea of pay radio."

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 2,100 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 $125 billion in annual sales. CEA's resources are available online at www.CE.org, the definitive source for information about the consumer electronics industry.

CEA also sponsors and manages the International CES - Defining Tomorrow's Technology. All profits from CES are reinvested into industry services, including technical training and education, industry promotion, engineering standards development, market research and legislative advocacy.

UPCOMING EVENTS

--  EHX Spring 2006
    March 28-April 1, 2006, Orlando, FL

--  CONNECTIONS (TM) - The Digital Home Conference & Showcase
    May 2-4, 2006, Santa Clara, CA

--  2006 PARA Conference
    May 3-7, 2006, Hilton Head, SC

--  The 10th Annual Consumer Electronics CEO Summit
    June 21-24, 2006, Southampton, Bermuda

--  2006 SINOCES
    July 7-10, 2006, Qingdao, China

--  2006 CEA Summer Technology and Standards Forum
    July 24-28, 2006, Coronado, CA

--  CEA Industry Forum
    October 16-18, 2006 San Francisco, CA