PORT WASHINGTON, NEW YORK, DECEMBER 17, 2009 - U.S. consumer technology* sales revenue was up slightly year-over-year in November topping $7.1 billion dollars, making November the first month in 2009 where there hasn’t been a revenue decline, according to leading market research company The NPD Group’s Retail Tracking Service. This is an improvement over the 1.3 percent decline posted for Black Friday which NPD reported last week and a great improvement over the 14 percent revenue decline we saw in November 2008.
Sales volumes were propelled by strong performance in core categories, such as notebook computers, and from surprising improvements in categories like camcorders, desktop PCs, and wireless computer networking. Growth in those areas helped offset continued revenue weakness in high-volume segments, such as point-and-shoot digital cameras, MP3 players, and flat-panel TVs. While average prices remained relatively low overall, some categories, such as desktop PCs and DSLR cameras, were able to buck the trends and deliver strong average selling prices (ASPs) and positive revenue growth.
| Key Revenue Growth Categories for November 2009 | |||
| Revenue % Change November 2009 vs. November 2008 |
Average Selling Price November 2009 |
Average Selling Price % Change November 2009 vs. November 2008 |
|
| DSLR Cameras | 44% | $812 | 7% |
| Desktop PCs | 37% | $703 | 7% |
| Mice | 35% | $30 | 15% |
| Notebook PCs | 22% | $544 | -24% |
| Networking Devices | 15% | $61 | 5% |
| Stereo Headphones | 14% | $19 | -10% |
| Hard Disk Drives | 11% | $94 | -13% |
| Camcorders | 6% | $174 | -21% |
| Flat-Panel TVs | -7% | $585 | -22% |
| Point-and-Shoot Cameras | -4% | $127 | -8% |
| MP3 Players | -9% | $136 | -13% |
According to NPD’s Retail Insight Service, average advertised prices for flat-panel TVs began falling early in November, in contrast to prior years when the vast majority of pricing activity took place at the end of the month. That low-price strategy helped boost sales much earlier than in past years, which helped increase volumes and overall revenue.
“Black Friday wasn’t the only time consumers saw low prices, retailers did tremendous price cutting all month long, and that got consumers into the stores early,” said Stephen Baker, vice president of industry analysis at NPD. “Despite finally having a month with no revenue declines, however, it probably won’t be enough to pull overall sales for 2009 into positive territory.”
To get more insight from Stephen Baker about November sales, read his blog post November is the Happiest Month.
*Consumer Technology sales include IT, imaging, audio, video, and consumables. It excludes video game products and mobile phones.
About The NPD Group, Inc.
The NPD Group is the leading provider of reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,700 manufacturers, retailers, and service companies rely on NPD to help them drive critical business decisions at the global, national, and local market levels. NPD helps our clients to identify new business opportunities and guide product development, marketing, sales, merchandising, and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys, and wireless. For more information, contact us or visit http://www.npd.com/ and http://www.npdgroupblog.com. Follow us on Twitter: @npdtech and @npdgroup.