Americans spending less on electronics

A study by the CEA finds that Americans spent less on CEs in the last year than the previous year

Following the financial horrors of the last several years, the economy is slowly picking itself up, wiping its nose, and dusting itself off. And then it's going to go make itself some chai, do some deep meditative breathing, and call its mother to vent. Falling in line with a recovering economy, consumer spending has been steadily climbing. As of February 2011, consumer spending was up 0.7%. In January, spending was up 0.3%. But…not so for consumer electronics. While the average American household spent $1,179 on consumer electronics in the past 12 months, that’s actually a decrease of $201 since last year, according to the Consumer Electronics Association’s 13^th Annual Household CE Ownership and Market Potential Study.

The study found that the average adult spent $652 on consumer electronics in the last 12 months, which down from $794 the year before. While men spent more than women did ($793 for men, versus $520 for women), men’s spending took a steeper dive than women’s, dropping $176, while women’s spending dropped only $111.

Additionally, in this year’s survey, the average household reported having 24 consumer electronic devices, while in the previous year, the average number reported was 25.

So the question is: what are people spending their precious, precious money on? Answer: video products. The study reports that 40% of households have HDTVs, with LCD TVs as the preferred choice. Indeed, LCD TV ownership grew more than any other consumer electronic product in the last 12 months, growing 12% year over year. Smartphones and tablets are also gaining ground as one in three households now owns a smartphone, and one in ten households now owns a tablet. E-readers have grown to 13% household penetration.

“Consumer ownership of most devices has increased despite consumers spending less on CE in the past year,” said Brian Markwalter, CEA’s SVP of research and standards, in a statement. “Several factors have led to a decrease in spending, including changes in consumer purchase patterns, product consolidation, decreasing price points and the high unemployment rate.”

The study also took note of the rising popularity of streaming video, as subscriptions to movie rental services grew 40%. With some 28 million subscribers, movie rental service providers like Netflix and Amazon are finding new ways to allow customers to stream video directly from the Web to their TVs via displays, game consoles like the Wii, and other set-top boxes connected to the Internet.

So while it’s probably a good thing that consumers are being a little more careful about how they spend, the sooner consumer spending picks up, the better off we’ll all be. 

Image source: thetoyman.com