Embrace the machine

Consumer technology sales — IT, imaging, audio, video and consumables — hit $129 billion in 2007, up 6.5 percent from 2006, said The NPD Group.

Separately, video game sales — including portable and console hardware, software and accessories — totaled nearly $18 billion, increasing 43 percent from 2006's of $12.5 billion, MarketingCharts writes.

Unlike videogame sales, consumer technology sales growth for the second half of the year — usually powered by the holiday season (Nov 18. - Dec. 29) — was just 5 percent. Overall US retail sales revenue fell almost 2 percent, to $9.6 billion.*

"Such a disappointing holiday season, compounded by a lackluster back-to-school season, as well as economic concerns, took a toll on consumer technology revenue growth in the second half of 2007," said Stephen Baker, vice-president of industry analysis, The NPD Group.

"It's concerning to see sales growth slowing, but not unexpected as industry trends point towards a consumer technology market offering its customers more evolutionary, rather than revolutionary, technological improvements in the coming year."

Other findings of the consumer-tech study:

• Almost half (47 percent) of all consumer technology spending in 2007 was concentrated on five categories:
  • notebook computers
  • LCD TVs
  • Desktop computers
  • Digital point-and-shoot cameras
  • MP3 players

• In contrast, consumer spending on these items was 42 percent in 2006 and 36 percent in 2005.

LCD TVs

In 2007, LCD TV sales…

• Increased 74 percent in dollar sales over 2006
• Went up 83 percent in units
• Accounted for 60 percent of total TV sales (Overall TV unit volume declined 9 percent.)
• Generated $1.7 billion in revenue Nov. 18 - Dec. 29, 2007 - a 50 percent increase over 2006, leading all categories during the holiday season

Mobile

• 1.7 million mobile units were sold during the 2007 holiday season.
• Revenue increased 170 percent to $388 million.

Videogames and PC Games

According to the findings of NPD's videogame study:

• Total console, portable and PC game sales totaled $18.8 billion in 2007 - the third consecutive year of record-breaking sales for this category.
• All video game categories underwent double-digit growth.
  • Console hardware sales - $5.12 billion, up 73 percent from 2006.
  • Portable game software (up 18 percent, to $911 million) and portable game hardware (up 19 percent)
  • Videogame accessories (up 52 percent) .

"NPD's consumer data uncovered some interesting trends to follow during the current console transition," said Anita Frazier, industry analyst, The NPD Group.

"For example, the 35 years of age and older demographic realized the greatest percentage growth, driven by software and accessories acquisitions, while the greatest increase in hardware sales came from the 'core' 18-34 year old demographic."

*According to NPD's weekly point-of-sale data, derived from a subset panel of retailers that also contribute to NPD's projected monthly POS panel.