Global gadget sales to touch $126 b in 2005

LAS VEGAS: Global consumer electronics sales are expected to climb by 11 percent in 2005, marking the second year in a row of double-digit growth, powered by demand for big-screen TVs, pocket-sized music players and tiny memory cards, an industry trade group informed.

Gadget sales will rise to about $125.7 billion in 2005, up from $113.5 billion in 2004 and $102.6 billion in 2003, according to the Consumer Electronics Association, whose annual Consumer Electronics Show Convention takes place this week in Las Vegas.

Gains in the industry are being spurred by the popularity of video products such as high-definition televisions, digital cameras and portable audio devices, like Apple Computer Inc.'s iPod digital music player, according to CEA.

Large liquid crystal display and plasma television sales are seen topping $15 billion in 2005, with over 40 percent of total TV revenues expected to come from these types of devices. Recent spates of LCD oversupply have helped cut prices for the expensive TVs, fueling demand.

"These new technologies, as part of an overall transition to digital displays, have shifted the U.S. TV market into a clear upgrade cycle," CEA said.

Shipments of digital cameras are expected to top 20 million units in 2005, up from 17.6 million, with revenue projected to rise to $ five billion from $4.5 billion.

Robust sales are also seen in flash media memory cards, the chewing-gum sized disks that hold images taken by digital cameras. CEA forecast $ six billion in flash media shipments in 2005, up from $ three billion last year, and $ one billion in 2003.

Portable MP3 player unit sales doubled in 2004 while revenues in the category tripled to $1.2 billion CEA said. Sales are seen rising to $1.7 billion in 2005.

Gains are also seen in shipments of personal computers, navigation systems for automobiles and mobile phone handsets.

Despite the strong overall growth, several consumer electronics categories are expected to see shrinking sales, particularly for products whose demand is in decline, such as cordless home telephones answering machines and "separate audio components."

CEA, U.S. trade group that represents audio, video and mobile electronics makers, forecasts industry growth every January and revises its forecast in August. CEA's estimates cover factory-to-dealer shipments, or wholesale figures.