U.S. factory sales of consumer electronics products are expected to increase by 7 percent this year, to $26.1 billion, with videocassette recorders, compact audio disc players and cellular telephones among the stronger selling items.
The projection was made here Sunday by the Electronic Industries Association`s Consumer Electronics Group at the opening of the International Summer Consumer Electronics Show.
The show, sponsored by the Washington-based trade group, runs through Wednesday at the McCormick Place complex. It isn`t open to the public.
According to the group, U.S. sales of consumer electronics products by manufacturers to distributors grew 6 percent, to $24.4 billion, in 1985.
The group`s 1986 sales estimate of $26.1 billion has been revised upward from its forecast of $25.7 billion, presumably indicating optimism that price increases, announced or anticipated, will stick and consumer spending will improve in the second-half selling season.
The group is projecting that sales will increase another 6 percent, to $27.7 billion, in 1987.
In the video group, demand for color television sets is expected to continue at record high levels, with factory shipments climbing to about 17.3 million units this year from 17 million in 1985. However, price competition will keep dollar volume flat at about $5.6 billion.
Included in the color TV group are sets equipped to receive stereo sound. Shipments of those are projected to double this year to 3 million units, and sales are expected to increase by 50 percent to $1.4 billion.
The group is projecting good increases in unit and dollar volume for videocassette recorders this year. However, the rate of growth won`t be as strong as in prior years, reflecting the product`s wide acceptance among consumers.
In 1986, videocassette recorder shipments are projected to increase 11 percent, to 13.2 million units, and sales to increase 12 percent, to $4.7 billion.
In the VCR group, shipments of camcorders, video camera-recorder combinations, are expected to nearly double this year to 1 million units, the level at which most newer products are considered a success. Factory sales are expected to jump 73 percent to $975 million.
Crashing through the 1 million-unit mark this year will be compact audio disc players. Shipments are expected to nearly double, to 1.8 million from 966,000 in 1985, and sales are projected to climb 66 percent to $360 million. Automobile audio equipment also is showing strength this year after slumping in 1985. Sales are expected to advance 22 percent to $2.8 billion in 1986.
In an otherwise sluggish telephone products group, cellular phones are projected to show good growth in unit and dollar volume this year.
Shipment of cellular, or mobile car, phones are expected to double to 150,000 units this year, and factory sales are projected to rise 61 percent to $185 million.
For 1987, however, cellular phone shipments are projected to increase only 17 percent and factory sales, pressured by falling prices, are expected to slip 5 percent.
Telephone answering machines also are expected to post good results in 1986. Shipments of the devices are estimated to increase 14 percent to 4.1 million units and factory sales to rise 13 percent to $300 million.
