2002 Audio Sales Decline To 9-Year Low

By Joseph Palenchar On Mar 10 2003 - 8:00am

Factory-level audio sales declined at double-digit rates last year in December, the fourth quarter, and the second half, driving down 2002 sales by 9.1 percent to $7.32 billion, CEA statistics show.

Industrywide sales, which slid for the second consecutive year, dipped to their lowest level since 1993's $7.2 billion.

In December, total industry sales fell by 18.8 percent to $448 million, and sales for the quarter and half were off 25 percent and 15.5 percent, respectively, to $1.78 billion and $3.75 billion.

Fourth-quarter volume was the lowest since 1989's $1.53 billion, and second-half volume was the lowest since 1991's $3.61 billion.

Here's how sales break down by category:

Home Systems: Declining sales of two-channel home-theater-in-a-box systems dragged down the total category for the month, quarter, half, and full year. Sales fell in December by 27.7% to $120 million, by 31.8 percent in the quarter to $499 million, by 24.8 percent in the half to $1 billion, and by 11.4 percent for the year to $1.88 billion. Full-year sales were their lowest since 1996's $1.7 billion.

Home Components: Full-year sales slid 11.4 percent to $1.2 billion, well below the industry's peak of $1.91 billion in 1995. Sales fell in December by 27 percent to $90 million, by 23.4 percent in the quarter to $317 million, and by 12.8 percent in the half to $633 million.

Combined Components, Systems: Sales fell by 27.4 percent in December to $210 million, by 28.8 percent in the quarter to $816 million, and by 20.6 percent in the half to $1.64 billion. For the full year, sales were off 13.2 percent to $3.08 billion, their lowest level since 1993's $3.1 billion.

Portables: The category, which includes home radio, nosedived in all reporting periods. Sales were off by 14.3 percent in December to $126 million, by 25.6 percent in the quarter to $558 million, and by 18.8 percent in the half to $1.12 billion. For the full year, sales contracted 15.1 percent to $2.03 billion, their lowest level since 1991's $2.09 billion.

Autosound: Full-year sales were up 4.5 percent to a record $2.21 billion. Sales were off by 3 percent for the month to $112 million, by 15.1 percent for the quarter to $405 million, and by 0.6 percent for the half to $993 million. All the weakness was in the fourth quarter.