CE Pro September 2024 - 11

2024 Consumer Technology Spending Grows Shaky
AS HIGH INTEREST rates
continue to weigh on the
U.S. economy, all eyes have
been glued to the almighty
consumer discretionary
spending reports (among
others) to see just how the
economy has been faring.
Generally, if people are
spending less on non-essential
goods, the economy is
slowing down, and according
to a report by Circana,
spending on consumer
technology might be among
those that is slowing down.
According to the latest
Future of Consumer
Technology report from
Circana, sales of consumer
technology products is
forecast to decline by 2% in
2024. Despite this, however,
Circana remains optimistic
about growth in a few select
categories.
" 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, vice president and
technology industry advisor,
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. "
Most consumer technology
categories underperformed
in the first quarter
and continue to do so, according
to Circana. Couple
that with the anticipated
rate cuts coming later this
year being far less significepro.com
cant
than originally anticipated,
eroding consumer
confidence and spending
in the second half, and you
have the current cautious
outlook.
Of course, this simply
reflects the near term for
the remainder of 2024, with
the longer-term outlook
for 2025 and 2026 looking
pretty good, according to
Gagnon.
Additionally, specific
categories of consumer
technology such as notebook
PCs and large-screen
TVs are expected to see an
increase in spending, despite
the dour look on the
rest of the segment.
Demand for ultra-large
screen TVs has exceeded
expectations from Circana.,
and that's not accounting
for the likely holiday season
surge. As a whole, Circana
projects positive growth for
TVs over the next two years.
Tablets have also seen a
notable boost in sales numbers
in late May leading into
June. The introduction of a
new generation of products
with upgraded capabilities
seems to have resulted in
consumer refresh activity
and spending stemming
from innovation.
" Introducing significantly
innovative products that
offer enhanced productivity,
performance, and convenience
will drive consumer
interest and upgrades, "
notes Gagnon. " Emphasizing
affordability will be crucial in
attracting consumers who
are under financial stress,
particularly younger demographics
facing high rent and
student loan repayments. "
This certainly explains the
current swath of high-interest
consumer technology
products for spenders, as
PCs, tablets, and TVs have
all benefited from the
current AI boom and more
innovative features within
products.
Earlier this year, Roku released
its new professional
line of TVs which use AI to
automatically correct image
quality for crisper viewing
experiences. Samsung has
also leveraged AI to improve
4K upscaling in its TVs,
Report from Circana
notes categories such as
large-screen TVs are still
high on the popularity list.
with LG using it to calibrate
picture setting in real-time
on its TVs.
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September 2024 CE Pro | 11
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CE Pro September 2024

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