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iSuppli: Global OEM Revenue To See Slight Bump

El Segundo, Calif. – Worldwide consumer electronics revenue to
original equipment manufacturers (OEMs) is forecast to rise 1.6 percent to
$317.3 billion in 2010, to counter the 6.7 decline to $312.3 billion seen in
2009, according to a new report from market analysts iSuppli.

Much of the revenue growth is expected to come from improving
sales of LCD TVs, digital set-top boxes (STBs) and appliances, according to

The firm said the 6.7 percent fall in CE OEM revenue in 2009
represented the market’s first annual decline since the 1.6 decrease during the
dot-com bust year of 2001.

“Sales of consumer electronics rebounded in the second half of
the year, setting the stage for renewed growth in 2010 and beyond,” stated
Jordan Selburn, iSuppli principal analyst. “One major bright spot for consumer electronics
in 2009 was the LCD TV segment, which achieved 4.2 percent revenue growth due
to incentives in China
and the increasing sales of LED-backlit sets. The LCD TV market is set to
extend its winning streak in 2010 as stabilization in the global economy and
declining prices prompt consumers to keep buying.”

Global LCD TV OEM revenue in 2010 will increase to $75.5 billion,
up 5 percent or $3.6 billion, from $71.95 billion in 2009, the largest dollar
increase of any consumer electronics segment for the year, iSuppli said.

Digital STBs, which will see OEM revenue rise to $18.2 billion in
2010, up $1.9 billion – or 11.6 percent – from $16.3 billion in 2009, represent
the next largest growth area.

“Strong sales of premium boxes will propel revenue growth in the
digital STB market,” Selburn said. “Consumers are snapping up premium STBs that
support advanced features like high definition and digital video recording.”

iSuppli said sales are particularly strong in the Asia-Pacific
region due to the continued expansion of digital infrastructure.

Global OEM revenue from appliances such as washing machines,
ovens and refrigerators is expected to rise to $76.99 billion in 2010, up 2.1
percent or $1.9 billion, from $75.4 billion in 2009-making it the third largest
dollar growth area for the year.

“Increases in sales are being driven by emerging economies, where
more households are buying basic appliances, such as washing machines,” Selburn
noted. “After a 4.6 percent decline in 2009, this area will rebound in 2010 as
global governments continue their stimulus efforts.”

Other forecasted revenue growth categories include DVD video
players, PMP/MP3 players, digital photo frames and handheld video games.

Meanwhile, in contrast to the gains being made in the LCD TV
market, global OEM revenue from plasma television is expected to contract by $3
billion in 2010, iSuppli said. Plasma television revenue is set to decline to
$9.2 billion in 2010, down 24.9 percent from $12.2 billion in 2009.

“Continued cost reductions are making LCD panels more cost
competitive, hurting sales of plasma sets,” Selburn said. “Furthermore, some of
the leading suppliers no longer foresee plasma generating sufficient sales
growth to continue investing in the technology.”