Germany: Falling TV Prices Outpace Rising Sales

Compared to the first half of 2013, consumer electronics sales in Germany rose 1.9% in Q1 and Q2 of 2014. The Consumer Electronics Market Index (Cemix), published by the GFU, has shown that total revenues reached more than €12.6 billion.

Cemix data is divided into three sections: Classic CE, Private-Use Telecom Products and Private-Use IT Products. Despite the overall rise, sales of Classic CE products – including items such as TVs and STBs – was down 4% YoY to €4.8 billion. Private-Use Telecom products (including smartphones and feature phones) were up 1.3%, to more than €3.9 billion; and Private-Use IT products (such as tablets, monitors and notebooks) climbed 10.6%, to €3.9 billion.
As expected in the Q1 results (Display Monitor Vol 21 No 21), the Football World Cup led to an increase in the number of TVs sold, which rose 8.6% in the first half of the year. However, ASPs fell 8.9% over that time, leading to an overall fall of 1%, to €2.2 billion. STBs (-17.5%), video (-12.5%), camcorders (-7.5%), digital cameras (-23.6%), personal audio players (-17.1%) and in-car multimedia products (-3.9%) also saw falling revenues in the Classic CE sector. However, home audio (5.2%), accessories (19.2%) and game consoles (54.4%) rose.
Smartphones dominates the Private-Use Telecom products, although at a slower pace. More than 10.6 million smartphones were sold, a 7.4% rise. Revenues rose 3.2% YoY, to more than €3.7 billion.
Almost all Private-Use IT product categories saw sales and revenue increases. Desktop PCs rose 35.4% with revenues up 26.6%; tablets were up 26.6% with revenues up 16.2%; and projectors climbed 59.5% with revenues of 56.4%.
The GFU expects a continued positive trend in the market this year.