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Lower Prices Sent CE Soaring: NPD

Shoppers spent $76.9 billion on CE and IT products in 2005 — an 8 percent increase over the $71.2 billion generated in 2004 — according to point-of-sale (POS) data compiled by The NPD Group, here.

“Prices came down and aggressive advertising increased,” said Stephen Baker, NPD’s industry analysis VP. “It was the one-two punch needed to get consumers in the stores.”

Specifically, unit sales of notebook computers increased 45 percent and dollar volume swelled 21 percent year-over-year, while an 8 percent fall in average prices for desktops helped boost unit sales 5 percent amid a 3 percent decline in revenue last year.

In flat-panel TV, LCD unit sales grew 160 percent, while dollar volume grew 127 percent over 2004, as the average selling price for an LCD TV fell below $1,000. Plasma TV sales also saw significant growth, with a 128 percent increase in unit volume and a 70 percent increase in dollar volume, despite a 25 percent decline in average prices.

Elsewhere, sales of MP3 players soared 159 percent in unit volume and 121 percent in dollar volume over 2004, while digital cameras enjoyed a 21 percent increase in unit volume and a 16-percent gain in dollar volume.