Consumer electronics sales: Euphoria gives way to uncertainty

With a 15% drop in the third quarter recorded by IDC on October 10, is the lean period back for the PC market? At the very least, it’s a hard landing. Like many sectors of consumer electronics, during the period of measures to combat the Covid-19 pandemic, it experienced a period of euphoria, with households equipping themselves en masse, some for work, some for distance learning. Logically, the demand is less strong today.

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Thus, Jonathan Angel, Marketing Director Europe Consumer PC at Asus, points out that after two years of growth “exceptional” 10% per year, “We are witnessing a return to normality with “flat” sales”. Same feeling in the world of television. “We are in a depressed market”, admits Jean-Yves Fabre-Darcourt, CEO of TP Vision France. Industry players are hoping the FIFA World Cup, which kicks off on November 20 in Qatar, will reverse the trend somewhat, as sporting events have traditionally driven sales.

The movement seems to speed up. At the end of August, the firm GFK only anticipated a fall of 10.4% for the IT and office automation sector. With inflation settling in for a long time, a still unfavorable euro-dollar exchange rate, protracted semiconductor supply problems, the difficulties are mounting. The smartphone market is not spared, which registered a decrease of 9% year-on-year, according to a report by the firm Counterpoint published on August 24.

The lever of sobriety

However, some players continue to take advantage of the new lifestyles that have emerged with the Covid-19 crisis. With the presence in the home becoming longer and longer, investments continue to equip your accommodation as well as possible and, if possible, to beautify it. This is reflected in particular in the maintenance of sales of large household appliances which, despite a slight fall in volume (−5%), remain constant in value, according to the firm Gfk. Explanation: Customers are moving toward more upscale and more decorative products, says Samsung, which has just launched a more “lifestyle” brand, Bespoke.

The robot vacuum market is also booming, with an estimated 25% growth, according to the ReportLinker site. In addition, in a world where teleworking is increasingly essential, “consumers tend to confuse professional and private use of devices”, says IDC. This has been understood, for example, by the Korean manufacturer LG, whose curved screen, presented at the beginning of September at the IFA fair in Berlin, dedicated to consumer electronics, can be used both for work and for an immersive experience for lovers of the videogames.

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