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CES: Global Tech Shipments to Top $1.1 Trillion in 2013

CompleteCoverage: CES 2013

The Consumer Electronics Association reported mixed
prospects for the consumer tech market in 2013, with smartphones and tablets
seeing significant growth while a number of traditional categories like TVs and
laptops seeing declines.

Overall, the CEA is predicting a modest 4% increase in the
global value of shipments to $1.106 billion, up from the $1.058 billion in
2012, when shipments actually declined by 1%.

The group delivered its prognosis during two opening press
conferences in Las Vegas on Jan. 6 at the 2013 International CES show, which
will run through Jan. 11.

The North American market is expected to do slightly better
with a 3% growth in sales in 2013, up from 1% in 2012.

But Europe is likely to decline and much of the global
growth will come from emerging markets and sales of smartphones and tablets.

CEA predicted that tablets and smartphones would be in a
virtual dead heat to be the largest single consumer electronics category in the
U.S. in 2013.

Both smartphones and tablets are expected to have about $37
billion in sales in the U.S.

Globally, the value of tablet shipments are expected to grow
25% in 2013 compared to a 60% growth in 2012.

Smartphone shipments should see a 22% pop in 2013, compared
to a 38% increase in 2012.

Meanwhile, the value of shipments for plasma TVs will drop
29% while LCD TVs will decline by 2% in 2013. PC and mobile PC shipments will
also decline.

The analysis also found that the growing popularity of
tablets was cannibalizing sales of smaller TV sets, which continue to decline,
game consoles and digital cameras.

In contrast, sales of TVs with larger screens continue to
increase, with jumbo sets larger than 60 inches now accounting for around 8% to
9% of U.S. TV set sales.

The CEA noted that Ultra HD will get considerable attention
at this year's show, some 10 manufacturers displaying around 50 models during
the show. 

But Ultra HD will take years to gain consumer traction,
given the high cost of sets and lack of content. The CEA is predicting sales of
only 23,000 units in 2013, rising to around 1.4 million in 2016.