Consumer electronics sales weak in 2024; rebound expected in...
Consumer technology sales are expected to decrease slightly this year, according to new data from Circana.
The latest “Future of Consumer Technology” report from the data firm predicts that consumer technology sales revenue is predicted to decline by 2% in 2024, based on sales figures from the first half of the year. Despite the decrease, Circana says it remains optimistic about growth in specific categories, such as notebook PCs and large-screen TVs, and expects overall industry growth to resume in 2025 and 2026.
“As we reach the midpoint of 2024, it’s clear that many of the economic pressures from late 2023 and early 2024 are still impacting consumer spending,” said Paul Gagnon, VP and technology industry advisor at Circana. “While unemployment remains low and real wage growth has been positive, high credit card debt and mortgage interest rates continue to strain consumer finances.”
Circana’s latest forecast indicates that most consumer technology categories underperformed in the first quarter and looked weaker in the second quarter as well, adding that consumers will remain cautious about spending for the remainder of 2024.
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Areas of optimism and growth, according to Circana, include:
- Computers and AI PCs Despite the overall cautious outlook, Circana has seen signs of improving consumer demand with computers. This is attributed to consumers beginning to upgrade and refresh products purchased early in the pandemic, signaling the start of a replacement-driven wave expected to continue over the next two and a half years.
- Ultra-Large Screen Size TVs Demand for ultra-large screen size TVs has exceeded expectations, Circana says. The category has been upgraded in the forecast for the second half of the year, especially given its popularity during the holiday season. Circana projects positive growth for TVs as a whole over the next two years.
- Tablets A notable boost in tablet sales in late May and into June has led to an upgraded forecast for the category. The introduction of a new generation of products with upgraded capabilities seems to have resulted in consumer refresh activity and spending stemming from innovation, according to Circana.
“We are still expecting growth in 2025 and 2026, particularly in key categories such as notebook PCs and large-screen TVs,” added Gagnon. “Introducing significantly innovative products that offer enhanced productivity, performance, and convenience will drive consumer interest and upgrades. Emphasizing affordability will be crucial in attracting consumers who are under financial stress, particularly younger demographics facing high rent and student loan repayments.”
