Consumers have reduced their discretionary purchases, owing to economic uncertainties and high inflation. Early projections by manufacturers proved to be overly optimistic, as sales of consumer electronics have declined further.
Delivery
This report comes in PPT.
Key Findings
Dampened consumer sentiment
The global economic slowdown, inflation and rising interest rates have impacted consumer sentiment, leading consumers to rethink discretionary purchases and cut down on purchases of electronics products in 2023.
Companies protecting their profits over market share
Manufacturers are focusing on high-end models with higher margins to protect their profits, leading to fewer affordable options.
Affordable indulgence
Manufacturers are also launching affordable flagship models to appeal to consumers who are seeking leading-edge features without the high cost associated with flagship models. Consumers are looking for more affordable alternatives without breaking the bank.
China’s recovery delayed until 2024
China’s economic slowdown is impacting consumer spending, leading to a decline in electronics sales, especially for mature categories like TVs and laptops. However, Chinese consumers are still keen on budget-friendly products, like true wireless stereo (TWS) earbuds.
Scope
About this briefing
Key takeaways
Early optimistic outlook for 2023 failed to materialise
LCD TVs: Sales poised for slow recovery after hitting rock bottom
Consumers finding ways to improve their cinematic experience without buying a new TV
Smartphones: Lack of new killer features to attract consumers
Profits generated to invest in new and emerging technologies
Laptops: Extended replacement cycles impact sales
Even Apple was unable to convince its customers to pay a premium for a laptop
China recorded the largest drop, as recovery was delayed until 2024
Global baseline outlook: Growth expected to slow in 2024 before reaccelerating in 2025
Global inflation expected to moderate further in 2024, though at a slowing pace
Real GDP annual growth forecasts and revisions from last quarter (1)
Real GDP annual growth forecasts and revisions from last quarter (2)
Consumer electronics data and reporting timeline
Consumer Electronics
Consumer Electronics refers to the sales of Computers and Peripherals, In-Home Consumer Electronics, In-Car Entertainment and Portable Consumer Electronics to the end consumer.
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