$145 Billion Spent on CE Products in 2006

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CEA Releases Digital America 2007: Publication Offers CE Industry Insights, Market Research, Trends and Analysis

The Consumer Electronics Association (CEA®) today releases Digital America 2007, a new educational resource for consumers and the consumer electronics (CE) industry. This annual publication details the strong growth of the CE industry and offers insights, trends, market research data and analysis on product categories such as accessories, audio, digital imaging, gaming, home networking, home theater, mobile in-vehicle electronics, video and wireless communications.

Americans purchased more than $145 billion in CE products in 2006, a record amount that represents a 13 percent increase over the previous year. With digital television displays leading the way, the consumer electronics industry passed a number of milestones, established sales records and set the stage for another decade of growth. In-home electronics take a large portion of these sales, while in-vehicle electronics and "anywhere" electronics show continuing growth.

Digital America 2007 charts the growth areas and opportunities in the CE market. Statistical and trend highlights of Digital America 2007 include:

• Sales of accessories for all CE categories are flourishing, particularly sales of flash media which is showing double-digit growth - a trend that CEA projects will continue through 2010.
• Thirty-three percent of U.S. households owned an MP3 player by January 2007 and CEA projects that MP3 players will account for 90 percent of portable audio sales in the coming year.
• Repeat buyers purchased about half of all digital camera units sold last year, and should overtake first-time digital camera purchasers in 2007. More cameras in the household means more opportunities for accessory profits from memory cards, batteries and cases, and more images to print, store and share.
• Based on gaming sales in early 2007 and the preceding holiday season, the gaming industry has significant growth ahead. Online play and next-generation DVD playback capabilities will continue to generate gaming sales this year.
• As broadband Internet connections become mainstream and broadband service providers hook up with content owners to deliver Internet-based audio and video, experts believe consumers will embrace home networks as more than just a way to share an Internet connection among multiple PCs.
• This year, the average selling price of a DTV is expected to drop to $901 from $989 in 2006.
• Aftermarket portable and transportable navigation devices for the car show signs of becoming mainstream in the coming years, after more than doubling in sales in 2006. CEA projects that these devices will soar to nearly $1.2 billion in 2007.
• Wireless handsets accounted for about one-eighth of the more than $145 billion consumer electronics industry this past year and more then one billion mobile phones were sold worldwide. Sales to wireless phone dealers should post a solid 6.5 percent gain this year to $19.1 billion.

Digital America 2007 also includes a brief history of major technologies beginning with the discovery of electricity in 1752 all the way to the innovation of broadcast TV on cell phones in 2007. The history of technologies and their incorporation into the mainstream serves as a valuable backdrop to the market analysis for each product category.

Digital America 2007 is available free for CEA members and can be found at the member's only website. For non-members, print copies and CD-ROMs are available for purchase for $49.99. For more information on CEA publications please visit: http://www.ce.org/Press/CEA_Pubs/816.asp.

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 $140 billion in annual sales. CEA's resources are available online at http://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.