Report: Despite Recession, Electronics Spending Up18 Mar, 2010 By: Chris Tribbey
Worldwide per capita income was down 2% in 2009, the first annual decrease since World War II, yet global revenue for electronics was up, according to a new study from iSuppli Corp.
Netbook PC revenue was up 90%, while revenue for smartphones and LCD TVs was up 9.6% and 14%, respectively.
“There’s been a measurable shift in how consumers are spending their disposable income,” said Derek Lidow, president and CEO of iSuppli. “In a time of great economic distress, when people had less money and spending on essentials like food and rent declined, consumers surprisingly used a disproportionate amount of their money to purchase new consumer electronics products.”
Worldwide shipments for LCD TVs were up 42% year over year, and iSuppli is predicting a 3.2% jump in 2010 and another 7.8% jump in 2011.
“Rather than spending on travel, people are opting to take ‘staycations,’ where they stay home during their vacation time,” Lidow said. “To make their staycations more enjoyable, consumers are buying products to entertain themselves in their homes, including LCD TVs.”