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Old Feb 19, 2013, 04:39 PM   #1
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Apple Drives Growth In Two Major Consumer Electronics Categories




NPD today released a report examining U.S. consumer technology sales for 2012. Among other things, the company said consumer technology sales have dropped by $4 billion since 2010, down to $143 billion.

Additionally, three of the top five categories based on 2012 revenue experienced declines from 2011 to 2012 -- the two categories that grew were smartphones and tablets, both of which are product lines that Apple currently dominates.

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"While CE remains a dynamic industry the fact is that the stellar growth of the past few years has made growth today more difficult," [said Stephen Baker, vice president of industry analysis at NPD.]. "Most market segments have high penetration rates and the demand for additional devices is slowing, or declining. Tablets and smartphones have been able to stimulate demand for additional devices, but unfortunately it hasn't been enough, yet, to sustain positive growth trends."
NPD went on to note that Apple accounted for 19.9% of U.S. sales, (based on revenue) an increase in share of 2.6% from last year. Samsung captured 9.3% of dollars spent, up from 7% in 2011.

The fall in TV revenue could be noteworthy given the recent rumors around an Apple television set. The company could be hesitant to launch a product in a shrinking category, though perhaps Apple might be able to drive double-digit growth like it has for smartphones and tablets.

Article Link: Apple Drives Growth In Two Major Consumer Electronics Categories
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Old Feb 19, 2013, 04:45 PM   #2
NOV
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If they EVER come out with a TV product...
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Old Feb 19, 2013, 04:47 PM   #3
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Interesting to notice the decline in desktop computers...
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Old Feb 19, 2013, 04:47 PM   #4
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Well... Not surprised. About to be another market too. And another.
Fashion and TVs.
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Old Feb 19, 2013, 04:49 PM   #5
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Awesome !
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Old Feb 19, 2013, 04:57 PM   #6
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Amazing to think these things barely existed just a handful of years ago.
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Old Feb 19, 2013, 04:58 PM   #7
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LOL, I was comparing 2011 vs 2012 and wondering where the growth was. I get it now.
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Old Feb 19, 2013, 04:59 PM   #8
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Oh God

No, people are not buying TV's because of rumors of Apple releasing a TV, there are a hundred thousand models of TV out there and nobody is holding their breath to get an Apple TV. Don't delude yourself of Apple's presence in an industry they have not tipped their hat into yet.

There are a lot of reasons why people are not buying TV's in 2012. A imminent release of 4K or OLED could be a major driving factor. Or maybe because the economy is down people don't feel the need to "upgrade" their TV, or maybe its just because the 42" they bought 5 years ago is still just perfectly fine.
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Old Feb 19, 2013, 05:00 PM   #9
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Why buy a laptop or desktop or TV when you can be perpetually distracted with facebook, games, and netflix on a tablet or smartphone anywhere you are?

EDIT: The reason that the CEO of CBS has chosen to bypass the iPad is because he knows that he'll be replacing TV with another media gateway that won't even bring in a 10th of the revenue currently.
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Old Feb 19, 2013, 05:02 PM   #10
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Quote:
Originally Posted by ChrisCW11 View Post
No, people are not buying TV's because of rumors of Apple releasing a TV, there are a hundred thousand models of TV out there and nobody is holding their breath to get an Apple TV. Don't delude yourself of Apple's presence in an industry they have not tipped their hat into yet.

There are a lot of reasons why people are not buying TV's in 2012. A imminent release of 4K or OLED could be a major driving factor. Or maybe because the economy is down people don't feel the need to "upgrade" their TV, or maybe its just because the 42" they bought 5 years ago is still just perfectly fine.
You should re-read the article. They were stating it is noteworthy in that Apple may not want to release a product in the TV category given the decline in growth.

-----------------------

Also of note is that Apple's notebook sales were up year over year in a declining market, and desktop sales were only slightly down (relatively speaking) in a heavily declining market, especially given they didn't release any new desktop models for nearly the entire year.

Last edited by wkadamsjr; Feb 19, 2013 at 05:24 PM.
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Old Feb 19, 2013, 05:16 PM   #11
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Apple TV

I just don't see a standalone Apple-branded TV. They'll just significantly redesign the Apple TV set-top box. As the numbers show, TV revenue is declining. Most people, as someone else pointed out, already have perfectly adequate flat screen TVs. There's a lot more sales potential for Apple to sell a set-top box that attaches to all those TVs already in the home. And, of course revenue is declining. Mobile devices are cheaper than desktops, which they are slowly replacing. This seems to me as kind of a "duh". Some unit sales numbers would have been an interesting addition to the report, as would profit vs revenue, where Apple would have stood out like a sore thumb.
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Old Feb 19, 2013, 05:25 PM   #12
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Uh oh, Apple is screwed!

Oh well, it was a fun ride.
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Old Feb 19, 2013, 05:30 PM   #13
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Quote:
Originally Posted by daveL View Post
I just don't see a standalone Apple-branded TV. They'll just significantly redesign the Apple TV set-top box. As the numbers show, TV revenue is declining. Most people, as someone else pointed out, already have perfectly adequate flat screen TVs. There's a lot more sales potential for Apple to sell a set-top box that attaches to all those TVs already in the home. And, of course revenue is declining. Mobile devices are cheaper than desktops, which they are slowly replacing. This seems to me as kind of a "duh". Some unit sales numbers would have been an interesting addition to the report, as would profit vs revenue, where Apple would have stood out like a sore thumb.
Actually, it is interesting that notebook sales are down. That suggests to me several things:

1) People are just not upgrading desktops as frequently.
2) People are replacing desktops with notebooks.
3) People are replacing notebooks with tablets, and more frequently than #2.

In some cases, people may even be replacing a desktop with a tablet.

I would tend to agree with your statement on the TV. Unless Apple can offer something completely overwhelming on a TV that they cannot accomplish with a set top box, I would much rather purchase a less expensive TV and an Apple set top box as an "accessory," and I'm sure the overwhelming majority would agree.
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Old Feb 19, 2013, 05:37 PM   #14
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I walked into the tablet section of Best Buy to get my iPad Mini and I was just amazed at the sea of other "tablets" that were there. I knew others were trying to make their own iPad, but had no idea there were so many.

I still hold to the statement that there is only 1 tablet on the market right now. (well 2 if you consider the mini a separate tablet).

----------

Quote:
Originally Posted by g0odfr1end102 View Post
Interesting to notice the decline in desktop computers...
I think this is all of the people who are better served by a tablet than a PC and made the switch.

A lot of people just want Facebook, internet access and email. Tablets fit that group real well.
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Old Feb 19, 2013, 05:43 PM   #15
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Upgrades in the Internet (i.e., better sites) is now how we upgrade our PCs. So yes I expect to see sales there decline.

Apple still capturing more of the revenue though. Always when we focus on the cash, Apple does really well.
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Old Feb 19, 2013, 09:44 PM   #16
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They sure drive growth in Samsung, Google, MS, and Sony

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Originally Posted by MacRumors View Post
The fall in TV revenue could be noteworthy given the recent rumors around an Apple television set. The company could be hesitant to launch a product in a shrinking category, though perhaps Apple might be able to drive double-digit growth like it has for smartphones and tablets.
Or maybe TVs have just gotten cheaper? The Apple TV set just seems like a ludicrous idea. There's already an Apple TV box for that.
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Old Feb 19, 2013, 11:46 PM   #17
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Quote:
Originally Posted by g0odfr1end102 View Post
Interesting to notice the decline in desktop computers...
Not that interesting, desktops are on their way out and laptops are also past their prime. Anyone who pays attention to tech trends should know that by now.
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Old Feb 20, 2013, 01:18 AM   #18
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Not that interesting, desktops are on their way out and laptops are also past their prime. Anyone who pays attention to tech trends should know that by now.
I am fully conscious that the "desktop era" is over. But think about a few months ago, when people were waiting for only one thing: Mac refresh. I mean, sure the desktop is on a downhill, but still I didn't expect those specific numbers.

That being said, it's true that this chart refers to all companies, but hey
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Old Feb 20, 2013, 01:58 AM   #19
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The global recession economy is also a big factor.

HD TVs, desktop computers, and even full-featured laptops are big ticket items. Most likely the persistence of a Recession economy has discouraged many people from upgrading and buying the newest models.

People are probably rationalizing: "I've had this older PC/TV/whatever for about 3 or 4 years now. I'd love to upgrade to a newer model now, but money is tight. Maybe we'll have to save up for another 6-12 months before we can afford a new one. Oh well."

The statistics should not surprise anyone, really.
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Old Feb 20, 2013, 04:10 AM   #20
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Quote:
Originally Posted by xVeinx View Post
Why buy a laptop or desktop or TV when you can be perpetually distracted with facebook, games, and netflix on a tablet or smartphone anywhere you are?

EDIT: The reason that the CEO of CBS has chosen to bypass the iPad is because he knows that he'll be replacing TV with another media gateway that won't even bring in a 10th of the revenue currently.
Your post struck a chord with me. It is definitely true that we now spend way more time at our tv content-enabled desktops or laptops/tablets than ever before. Local tv stations and networks are sooner or later going to have to come to grips with the fact that people's tv viewing habits have changed irreversibly, and those pre-pc era levels of tv viewing audience figures are never going to come back.

CEOs like Les Moonves will hopefully sooner, rather than later, realize that it's in their best interest to join the revolution in entertainment at their terms, rather than be swept up by it, or worse, stubbornly holding on to past successes, and fading into irrelevance.
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Old Feb 20, 2013, 06:05 AM   #21
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Originally Posted by Santabean2000 View Post
Amazing to think these things barely existed just a handful of years ago.
and they'll barely exist a handful of years from now
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Old Feb 20, 2013, 07:47 AM   #22
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Originally Posted by GermanyChris View Post
and they'll barely exist a handful of years from now
What makes you say that?

The PC box is heading south, but smart phones and tablets..? Sure they'll evolve, but I can't see them moving away.
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