CEA Says First Half Audio Factory Sales Rose 16%

Arlington, Va. — Rising home- and portable-audio sales lifted June's industry-wide audio sales by 23.4 percent to $938.8 million and first-half sales by 16.1 percent to $4.68 billion, CEA statistics show.

The latest factory-level sales statistics show the industry gaining momentum with each passing quarter, rising 15.1 percent in the first quarter to $2.34 billion and 17 percent in the second quarter to $2.34 billion (see table).

The latest statistics also point to:

• a maturing MP3 player market, which propelled portable audio sales upward in 2005 by 119 percent but only by 43.3 percent during this year's first half;
• a reversal of fortunes in the component home audio industry, whose sales fell 20 percent in 2005 but rebounded 9.8 percent in the first half of this year;
• continuing weakness in the home audio market, with first-half sales falling 1.9 percent to $1 billion because rebounding component sales couldn't offset an 11.9 percent decline in home system sales;
• continued contraction in home system sales, which fell 26.7 percent in 2005 and 11.9 percent in the first half of this year. A 21.5 percent bounce in June, however, could signal that the end of the decline is near,

Portables: June sales jumped 37.1 percent to $521.9 million, 34.5 percent in the second quarter to $1.25 billion, and 43.3 percent in the first half to $2.62 billion.

Home audio systems: Monthly sales rose for the first time in June, accelerating at a brisk 21.5 percent rate to $127.6 million. That was enough to drive up second-quarter sales by 8 percent to $325.5 million despite consecutive monthly declines in each of the half's previous months. First-half sales were off 11.9 percent to $489.7 million.

Home audio components: Back from the brink, component sales climbed 15.5 percent in June to $101.9 million. Momentum accelerated in the second quarter, when sales rose12.7 percent to $266.1 million following a first-quarter gain of 6.9 percent. First-half sales were up as a result by 9.8 percent to $519.1 million.

Total home audio: Component audio's strength didn't prevent a first-half decline in total home audio sales (components and systems combined). June sales were up 18.7 percent to $229.5 million, and second-quarter sales were up 10.1 percent to $591.6 million, but first-half sales were down 1.9 percent to $1 billion.

Aftermarket autosound: Sales were essentially flat in June at $188.4 million, but even that is welcome news following a first-quarter decline of 14.4 percent, a second-quarter decline of 6.3 percent to $503.3 million, and a first-half decline of 10.7 percent to $1.05 billion.

Industry sales: June sales jumped 23.4 percent to $939.8 million, marking the second biggest monthly gain of the year. Sales were up 15.1 percent in the first quarter to $2.34 billion, 17 percent in the second quarter to $2.34 billion, and 16.1 percent in the first half to $4.68 billion.