consumer electronics DAB radio
Digital challenge
The sales of DAB radio fell short of industry predictions although lower prices are fuelling the demand for DAB radio.
While the television digital switchover races towards its final conclusion, the start of the digital switchover for radio remains unclear. DAB is seen as the vanguard for digital listening, which is why the latest sales figures make unsettling reading for the industry. Total sales in
challenges facing DAB, many industry watchers cite the C-factor – cars, coverage, content and communication
“
volume terms for the 12 months ending December 2010 were 1.92 million pieces, a fall year-on-year, to 2.0%. Industry expectations were that DAB sales would breach the two million mark. Value was down almost 5% (4.8%) to £163 million and average price slipped 2.8% to £85. With the bulk of DAB sales taking place in Q4 (some 750,000 units were sold in Q4 2010), adverse weather no doubt played some part in depressing sales. But the extent to which heavy snow played a part in falling DAB sales is not clear.
Market trends
On a brighter note, cumulative DAB sales have passed 12 million units and more than a third of homes (36%) have DAB radios. The fall in the average price is partly a result of economic times, but it is disappointing when you consider that, last year, it rose by 12% as a result of consumers opting for premium brands and well-specified models offering features such as radio recording, iPod docking and internet radio. With some supermarkets selling DAB radios for less than £25, the pressure on prices is intense.
Portable DAB achieved sales of 960,000 units, a rise of 0.7%, with value at £55.4 million (up 1.3%) and average price £58
IndependentElectricalRetailer £ Market trends
✔ Volume was down 1.9%, value down almost 5% and average price was down almost 3%, illustrating price pressures in this sector.
✔ Portable radio accounts for 50% of market by volume, but audio systems take largest share by value – 45%.
✔ Car radio conversions, compelling content, improved coverage and better communications are major challenges in this sector.
✔ Forthcoming launch of minimum DAB radio specification should help boost product performance, especially at the bottom end of the market.
✔ The 2015 target for the start of a digital radio switchover remains a huge industry challenge.
30 BusinessBook2011 When it comes to the
in association with GfK
”
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89