Higher ASPs to Spawn 7% Consumer Tech Revenue Growth: NPD
Strong first-half sales and rising average selling prices are prompting NPD to project that U.S. consumer tech industry revenue will grow 7% year over year in 2021 despite a 1% unit sales decline, reported the company Tuesday. NPD expects 2022…
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revenue to be down 7% on a 6% unit decline, while 2023 will bring a 4% revenue decline as units decrease 5%, it said. NPD attributes this year’s higher than expected ASPs to increased shipping costs and inflation from component shortages, plus “consumer readiness” to trade up to more premium products, said Stephen Baker, vice president-industry adviser. A lack of “promotional activity” also is at play, he said: “All of these factors have driven our total revenue projections up, but higher ASPs inevitably lead to lower demand, resulting in unit sales declines in categories such as TVs, networking devices, and printers in the back half of the year.” After the “historically high” COVID-19 pandemic-induced demand for consumer tech products in 2020 and 2021, “we are anticipating near-term declines with a slow climb back to normalcy by the end of 2023,” said Baker.