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Video hardware manufacturers and distributors closed out the first half on a tough note as June sales continued to underperform the year-ago period in all categories except DVD players.
According to the Consumer Electronics Association (CEA), analog direct-view color TV sales continued to sputter in the first half of the year, due in part to the impact of the emerging digital television market, as unit sales to dealers dropping 9.4 percent below the year-ago period to 4.5 million. Second quarter sales finished with the second softest performance of the year, registering 19.4 percent down at 1.98 million units, while June sales also fell 19.4 percent to 1.98 million.
Based on traditional selling patterns June color sales were at a weakened seasonally adjusted annual rate of 21.8 million, slightly higher than the 20 million rate for the quarter.
Similarly, TV/VCR sales were down 23.4 percent for the quarter at 188,322 units, and down 20 percent for the first half at 440,202. June sales were off 23 percent for the year-ago period at 76,328 units.
The annualized selling rates for the month came in at 4.7 million and for the half at 4.6 million, while the second quarter rate dropped to 4.1 million units.
Analog projection TV continues to feel the stiffest impact from the rising digital TV market. The category posted a 23 percent decline in June to 76,328 unit sales to dealers, a 23.4 percent decline to 188,322 for the quarter and a 20 percent fall for the half to 440,202 pieces.
The June selling rate was 990,613 units, while the rate for the first half was 1.1 million and 1 million for the quarter.
VCR decks also showed some sluggishness as factory sales dropped 21.7 percent in June to 1.48 million, while second quarter sales toppled 34.9 percent to 3.61 million and first half sales fell 28.9 percent to 7.2 million units.
The seasonally adjusted selling rate for decks was 16.7 million for the month, 17.1 million for the first half, and 15.6 million for the second quarter.
Camcorder sales dipped 9.6 percent in June to 537,456 units and 6.2 percent for the second quarter at 1.39 million. Factory sales for the first half were virtually flat at 2.6 million. The seasonally adjusted selling rate for June was 5.76 million, while the half came in at 5.6 million, and the second quarter showed 5.38 percent.
The lone video star of the period in categories reported weekly by CEA, was again DVD players, which garnered a 40.7 percent increase in June at 920,839 units. Sales for the second quarter came in at just over 2 million units for a 36.8 percent increase over last year, and 4.4 million for the first half, a whopping 63.3 percent climb over the first half of 2000.
This TWICE webinar, hosted by senior editor Alan Wolf, will take a look at what may be the hottest CE products at retail that will be sold during the all-important fourth quarter. Top technologies, market strategies and industry trends will be discussed with industry analysts and executives.