CEA: Audio Sales Down In Sept., Q3, YTD

Arlington, Va.— Factory-level audio sales slipped 7.4 percent in September to $706 million, helping drag down third-quarter sales by 3 percent to $2 billion and nine-month sales by 1 percent to $5.63 billion, the CEA said.

Third-quarter sales hit a nine-year low and barely exceeded 1993's $1,999,052. The third-quarter decline followed a second-quarter gain of 9.1 percent and a first-quarter drop of 9.5 percent.

September's audio sales were the lowest since September 1991, thanks largely to portable and home system sales that continued to climb downward during the month. Aftermarket autosound sales, however, continued to rise at healthy rates in September, and home components continued a modest rise.

CEA also released these details from its monthly supplier survey:

Autosound: Sales rose for the month, quarter, and year-to-date, with September sales up 7.1 percent to $205 million. Third-quarter sales rose 12.5 percent to $587 million following a 13 percent second-quarter gain and a first-quarter 5.1 percent gain. Sales for the nine-month period were up 10.1 percent to $1.81 billion.

Home components: Sales rose for the fifth consecutive month in September, but this time by only a modest 2.3 percent to $112 million following three months of sharp double-digit percentage growth. Sales for the quarter were up 11.4 percent to $348 million following the second-quarter's 6.7 percent gain and a first-quarter drop of 9.1 percent. Year-to-date sales were up 2.8 percent to $969 million.

Portable audio: The category, which includes home radios, plummeted 14.7 percent to $210 million in September and 10.6 percent in the third quarter to $561 million. Year-to-date sales were off 10.3 percent to $1.48 billion.

Home systems: Although suppliers say home-theater-in-a-box (HTiB) sales continue to rise, the gains continued to be offset in September by falling shelf-system sales. Total system sales fell in September by 16.8 percent to $180 million, by 16.1 percent in the third quarter to $504 million, and by 5.6 percent for the year-to-date to $1.38 billion.

Total home (components, systems): September's rise in home component sales couldn't offset the plunge in system sales, driving down total home audio sales by 10.4 percent to $292 million. Third-quarter sales were off 6.7 percent to $852 million following a second-quarter gain of 15.7 percent and a first-quarter decline of 13.6 percent.