CES 2014: UltraHD spike will fail to halt 2% CE revenue decline

Editor | 09-01-2014

Despite UltraHD/4KTVs being the big story for the traditional CE market at this year's CES, increased shipments of such devices won't prevent a fall in product revenues research firm IHS predicts.

In its Internet-Enabled Consumer Electronics Market Tracker, the analyst believes that by the end of 2014 the global CE market will slip 2% to $250 billion. This would represent a fourth consecutive year of decline for a traditional CE market consists of a range of devices, including televisions, set-top boxes, digital still cameras, video game consoles and Blu-ray players.

IHS sees the traditional market as under extreme pressure from wireless devices such as smartphones and tablets which consumers are increasingly purchasing and using in place of traditional CE devices. Indeed IHS calculates that global factory revenue for smartphones and tablets in 2013 rose to be larger than for the entire CE market the first time this has ever occurred.

"While exciting new technologies such as UHD and wearable devices are being shown at CES, it will take a few years until these products attain enough of a volume to drive the growth of the overall CE market," said Jordan Selburn, senior principal analyst, consumer devices, for IHS. "Until these products enter the mainstream, traditional CE revenue will continue to dwindle."

Looking forward at the UltraHD sector, the analyst expects shipments to reach 38.5 million by 2018, up from 1.5 million in 2013.Yet this would still only amount to around 16% of all LCD TV shipments.