Apple, Google, Amazon and Qualcomm continue to be driving forces for the global tech industry, while US CE firms also show resilience.
Despite industrial, political and demographic shifts, the US is still the world’s second largest CE manufacturer, after China. Over Q2 and Q3, 2019, the US economic expansion passed a 10- year milestone after enjoying the longest stretch of uninterrupted growth on record.
According to National Electrical Manufacturers Association Chief Economist Don Leavens, “One reason for the record endurance is the expansion’s slow growth pace compared to previous recoveries.”
Data-powered consultancy Intelligence Node has used e-commerce data from the US market to observe that the laptop market is “still alive” thanks to business and gaming. Total laptop shipments are decreasing and average prices falling as consumers turn to devices such as tablets. However Dell is enjoying US sales growth of 7%.
US MOBILE USERS NUMBER WELL INTO THE 200 MILLIONS, WITH PROJECTED GROWTH AHEAD
Mobile devices continue to be the most dynamic CE category, with Apple and Google Android dominating US sales: “US mobile users number well into the 200 millions, with projected growth ahead,” says Intelligence Node. “Tablets and e-readers are experiencing upward trajectories, though camera sales are facing large price markdowns.”
Home entertainment continues to grow with home audio systems and theatre systems witnessing a rise in sales. Asian brands dominate the HDTV and 4K TV, but there is a homegrown success story in the shape of Vizio; which offers aggressively- priced products to consumers.
US tariffs have not benefited home appliance manufacturers such as Whirlpool and General Electric because of increased costs in their supply chain. However, Silicon Valley tech giants Apple, Google and Amazon continue to be influential globally, while Qualcomm’s IFA keynote underlined the company’s leadership in mobile chip manufacturing, which positions it well for the 5G revolution.
Photo: Don Leavens Chief Economist, NEMA