US Consumer Tech Sales to Grow by 18% in Q4 2020 Compared to 4% in Q4 2019

As a result of remote schooling and work-from-home trends in 2020, growth in consumer tech has been strong in the US since March. According to the research data analyzed and published by Comprar Acciones, the sector’s robust performance will extend up to Q4 2020 with an expected 18% year-over-year (YoY) growth rate. In comparison to Q4 2019, this will be remarkable growth seeing as during that period, the YoY growth rate was only 4%.

In Q2 2020, there was notable growth in consumer tech segments associated with working and schooling from home. Similarly, home entertainment segments saw a notable increase.

Some of the categories reporting the highest growth rate during that period included notebook computers which grew by 45% and tablets at 37%. Monitors recorded the highest gains, at 84%, as printers grew by 59% and mice and keyboards increased by 62%.

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The report reveals that a huge chunk of the sales in consumer tech took place via eCommerce platforms. During Q2 2020, eCommerce accounted for 69% of all sales in the sector, compared to 48% in Q2 2019. Moving forward, it is expected that the figure will remain above 60% as consumers continue to shift to new modes of purchase. But while categories related to work and learning took priority during H1 2020, the NPD Group predicts healthier gains in wants and gifts during the holiday season.

Supplies Sector Sales Drop by 32% amid 51% Surge in Notebook Computer Sales during ‘Back-to-School’ Season

During the seven-week period which ended on August 8, 2020, there was an interesting trend in sales related to the ‘back-to-school’ season (virtual classes). Typically, the office supplies industry records massive gains during such periods, with increased sales of pencils and notebooks.

However, sales in the school supplies sector dropped by 32% during the period compared to a similar period in 2019. As a result, the revenue that the sector usually reports during this time dropped by 50%.

The surge this time around was in the consumer tech sector with students preparing for online classes. Notebook computer sales soared by 51% during the said period while monitors grew by 79%.

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Keyboard sales rose by 62% while mice increased by 43% and docking stations at 12%. There was also a remarkable increase in the sales of communication devices. For instance, webcam/ USB camera sales rose by 116%.

Router sales also increased as the home network would be expected to handle increased traffic. Mesh routers, in particular, recorded an increase of 73% in sales.

At the same time, there was an increase in the sales of educational books. Activity books took the lead, with sales growing a whopping 458%. Non-fiction books related to education saw a 125% increase as language arts books grew by 117%. Math book sales surged by 20% and home schooling books rose by 144%.

US Overall Tech Revenue to Drop by 2.2% amid 16.6% Growth of the Consumer Electronics Sector

In spite of the growth recorded in various consumer tech segments, the overall US tech industry will drop in 2020. According to the Consumer Technology Association (CTA), retail sales revenue in the sector will decline by 2.2% by the end of 2020 to $406.8 billion.

The projected decline will be the first loss the industry has recorded since 2009. However, the CTA projects a rebound in 2021 with a 5.2% growth in revenue.

According to the CTA report, some tech segments are expected to report high growth amid the pandemic. These include software and streaming services. Overall, the tech segment is projected to grow by 14% to $86 billion in 2020.

Moreover, video spending is estimated to rise by 23% YoY to reach $27 billion, while audio services are projected to grow by 21% to reach $8 billion in revenue. On the other hand, video gaming software and services expect a growth rate of 10% to reach $40 billion.

Furthermore, with consumers monitoring potential coronavirus symptoms, health monitoring device shipments will rise by 75% to 10 million. This increase in shipment will result in a revenue surge of 73% to $632 million.

In terms of revenue generation, smartphones are projected to take the lead with $72 billion. Notably though, this will mark a 6% drop compared to 2019. However, 5G smartphones are expected to post an 800% increase in shipments (14 million) and a 665% revenue surge ($11 billion) following their introduction in 2019.

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On a global scale, it is expected that revenue in the consumer electronics sector will grow by 16.6% YoY in 2020. According to a Statista report, the segment’s revenue is projected to reach $375.615 billion.

Growth in the consumer electronics sector is estimated to maintain a 5.5% rate between 2020 and 2024, to reach $464.554 billion in 2024. User penetration is set to reach 22.3% in 2020, growing to 32.5% by 2024.