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CEA Forecast: Batteries Lead Charge Into New Century

By Jeff Malester -- TWICE, 1/29/2001

ARLINGTON, VA. -A charged-up battery brigade, led by the redoubtable rechargeables, boosted battery factory dollar sales in 2000 to $4.6 billion. This is a $1 billion jump from the $3.6 billion in battery sales recorded in 1999, a 27 percent increase, according to annual statistics released by the Consumer Electronics Association in its Accessories Sales Outlook for 1999-2001.

CEA predicts the burgeoning battery segment-by far the largest in factory dollar sales last year in the overall magnetic media and accessories category, with a 66 percent sales share-will tack on an additional $447 million in sales in 2001, climbing another 11 percent to reach $5.1 billion.

In its recently released outlook for 2000, CES said total factory sales for the magnetic media and accessories category-which includes blank cassettes, batteries, accessories and computer disks-reached $7 billion, a 17 percent surge from the $6 billion recorded in 1999. Behind batteries, other segment totals include accessories at about $1.5 billion, blank audio and videocassettes at $654 million, and computer disks at just under $200 million.

In the electronic accessories category, CEA, based here, includes video, audio and telephone accessories, as well as accessories for video cameras/camcorders and wireless products. Battery sales include primary cells used by consumers.

The CEA outlook shows accessories sales continued their steady growth in 1999, reaching $1.4 billion, a healthy 16 percent increase over the $1.2 billion recorded in 1998. In 2000, the association expects the accessories segment to hit $1.5 billion, up about another 7 percent. By 2001, the accessories segment is expected to jump about another $140 million to $1.65 billion.

In blank media, sales figures continue their steady trend downward. Total factory sales in 1999 were $800 million, off about 15 percent from the $920 million recorded in 1998. CEA estimates for 2000 further reduce sales expectations by about 22 percent to $654 million. In 2001, the forecast reduces the total about 10 percent to $593 million.

Audio cassettes, the smaller of the two blank-cassette segments, did $208 million in sales in 1999, down about 20 percent from the $250 million reported in 1998. In 2000, audiocassette sales are estimated at $162 million, a 28 percent decline. By 2001, CEA forecasts this number will drop to $138 million, or about 25 percent.

Videocassette percentage drops were not as steep. The $670 million figure registered in 1998 dipped about 13 percent to $590 million in 1999. This is estimated to drop another 20 percent to $492 million in 2000, and in 2001, another 8 percent, to $455 million.

However, percentage declines in unit sales of blank cassettes were considerably less than drops in dollar-sales percentages, indicating ongoing price erosion in the segment.

Unit sales of audiocassettes hit 335,000 in 1999, off about 6 percent from the 355,000 in 1998, while 289,000 units in 2000 was a 19 percent decline from 1999. In 2001, the unit figure is forecast to drop to 263,000, a 9 percent dip.

Unit sales of videocassettes reached 431,000 in 1999, off more than 6 percent from the 403,000 units registered in 1998. The 2000 figure is estimated to come in at about 404,000 units, less than a 4 percent decrease. In 2001, CES forecast sales of 383,000 videocassette units, another 5 percent decrease.

Computer-disk dollar factory sales also have been slipping, down from the $232 million recorded in 1998. In 1999, the figure reached $200 million, off 14 percent. The drop should reach $195 million in 2000, about a 5 percent dip, and $184 million in 2001, an 11 percent decrease.

Home security-viewed in tandem with the magnetic media and accessories category but not included in sales totals-accounted for an estimated $1.8 billion in factory sales in 2000, up about 5 percent from the nearly $1.7 billion reported in 1999 and up 10 percent from the $1.5 billion in 1998. In 2001, CEA forecast home security would account for over $1.8 billion in sales, about a 3 percent rise.

CEA 1999-2001 Accessories Sales Outlook / Units and $ value in millions

1999 Actual Unit Sales

1999 Actual Factory $ Value

1999 Actual Average $ Price

2000 Estimate Unit Sales

2000 Estimate Factory $ Value

2000 Estimate Average $ Price

2001 Forecast Unit Sales

2001 Forecast Factory $ Value

2001 Forecast Average $ Price

Home security

--

1,660

--

--

1,750

--

--

1,820

--

Total accessories

--

1,398

--

--

1,515

--

--

1,652

--

Batteries (1)

--

3,620

--

--

4,640

--

--

5,087

--

Blank cassettes (²)

766,000

798

--

693,000

654

--

646,000

593

--

Audio

335,000

208

--

289,000

162

--

263,000

138

--

Video

431,000

590

--

404,000

492

--

383,000

455

--

Computer disks (²)

530,000

200

--

526,000

195

--

506,000

184

--


(1) Primary cells for consumer use.

(²) Sales through consumer channels.

Source: CEAcTWICE 2001

CEA 1999-2001 Accessories % Change / Units and $ value in millions

% Change 2000/1999 Unit Sales

% Change 2000/1999 Factory $ Value

% Change 2000/1999 Average $ Price

% Change 2001/2000 Unit Sales

% Change 2001/2000 Factory $ Value

% Change 2001/2000 Average $ Price

Home security

--

5.4

--

--

4.0

--

Total accessories

--

8.4

--

--

9.0

--

Batteries (1)

--

28.2

--

--

9.6

--

Blank cassettes (2)

-9.5

-18.0

--

-6.8

-9.3

--

Audio

-13.7

-22.1

--

-9.0

-14.8

--

Video

-6.3

-16.6

--

-5.2

-7.5

--

Computer disks (2)

-0.8

-2.5

--

-3.8

-5.6

--


(1) Primary cells for consumer use.

(2) Sales through consumer channels.

Source: CEAcTWICE 2001

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