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Good 2nd Half For CE Is Expected


Based on what you have
heard from retailers, manufacturers
and seen from your own business,
what does second half demand look

Jerry Satoren, DSI Systems:

half demand will be enormous for
tablets and while these will be low profit
sales, they will create a huge appetite
for very profitable tablet accessories.

I also believe that we will see huge
demand for 55-inch and larger flat panel
TVs. In particular the 60-inch and up
LED segment will hit retail price points
that will drive consumers to consider
replacing their first flat panel.

For many consumers that purchase
is still the main TV in the home and was
an expensive 42- or 50-incher. I believe
that this sweet spot of size and affordability
will make this segment extremely
active and the number one profit driver
for the second half of the year.

Fred Towns, New Age Electronics:

Customers will be there to buy for
the holidays. They are far more educated
and familiar with newer technologies.
There may be some concern and
confusion with the different operating
systems, but retailers are gearing up
to address that situation. Categorywise,
it is going to be a tablet-centric
Christmas. Retailers will need to be
prepared to offer the right accessories
for consumers, like
cases, memory
and storage, to
personalize their
tablets to their lifestyle.

Michael Flink,
ADI Americas:

the second half of
the year we are expecting
growth. Categories
related to 3D
content will continue
to create interest
and drive volume, and profits will
be primarily driven by accessory products
and add on technology. Dealers
who upsell and cross sell to provide a
complete solution, will continue to be

Jim Annes, AVAD:

Second half demand
is predicted to be stronger than
the first half of the year as the economy
continues to improve and consumer
confidence grows. We are looking to
accelerate our success in Q1 over the
entire year and video, control, accessories
and audio all look strong. There
are likely some
disruptive events
and technologies
entering the market
around Q4
this year, so the
items that drive
both revenue and
profit may change
before we ring in

Ron Eby, D&H

will be driven
by TV sales, and
we expect growth in Internet-connected
devices including IPTVs. Of course,
we can’t leave out growth in the tablet
space, since a list of new models is set
to launch. Demand in this area and the
overall mobile marketplace is expected
to persist. Profits will be driven by accessories.
The margins on accessories
have always been key in increasing
profitability, which is why we’ve been
training our dealers to think in terms of
add-on accessory sales in all categories.
It’s a smart yet simple strategy.

Brent McCarty, Ingram Micro
Consumer Electronics:

In the second
half of the year we expect significant
revenue pick up as a result of
our exclusive Onstar relationship. We
have opened many new customers and
there is a significant demand forecast
for their FMV (For My Vehicle) product
which brings Onstar services to non
GM vehicles. The product will start
shipping for us in June and July with
a soft launch at retail in July and a full
marketing support commencing in August.

Other than that we are seeing the
shift from brick and mortar to .com
which is helpful for our business as we
are very efficient in supporting .com
through expanding product selection
utilizing our 1,200 vendors and by
simplifying the logistics process. We see this as a big opportunity and really
want to help our brick and mortar retailers
enhance their .com capabilities.

Dennis Holzer, Powerhouse:

expect our business in the second half
to continue to grow. We anticipate
video to continue to drive the volume
as it has with larger TV sizes – 60- to
70- inches – to both add volume and
better profits. Audio has significantly
increased from where it was, and we
expect that trend to also continue.

Connectivity devices within the home
will continue to be at the forefront of
sales and profits. Look for home automation,
lighting, security, iPad and like
devices to provide the greatest opportunity
for sales and increased profits.

We are moving into a period of time
where new technologies will offer many
more selling/profit opportunities than
we have had in some time, with some
providing reoccurring revenue streams
to the dealers.

Mark Gustavson, Wynit:

We remain
optimistic for a strong back half of
2011. The demand for tablet devices,
especially those that operate on multiple
platforms, will drive both volume and
profits. Additional profit drivers include
storage, connectivity, and accessories.

Bill Stewart, Petra Industries:

We have seen a very positive trend in
our business so far this year, and we remain very hopeful that this continues
as our economy continues to recover.
Apple, cellular, and tablets will all be
extremely popular categories, but regardless
of category, we will remain
focused on providing the largest and
best assortment of accessories that
a retailer can attach to any hardware
purchase. Undoubtedly, add-on accessories
will continue to drive business
for our dealers, and as always, we are
committed to finding the best brands at
the lowest prices.

Warren Chaiken, Almo:

are still being dictated by the state of
the economy, and currently it is not
strong enough to generate the level
of consumer confidence that would
spur sales organically. his means that
manufacturers will need to create that
demand through pricing, however it
remains to be seen what the Manufacturers
appetite for doing this will be,
given the increase in commodity prices.
Therefore, yes it could be a tough
second quarter.