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Unpacking Consumer Electronics Trends, Innovation And Agility This Holiday Season And Beyond

Nov 12, 2024 - forbes.com
The holiday shopping season is expected to see a record $241 billion spent online, with electronics, apparel, furniture, and home goods accounting for over half of this. However, the electronics industry faces challenges around lead times, inventory, and aligning with end-of-year demand. The season is also shorter due to a late Thanksgiving, and geopolitical events and high inflation are impacting consumer spending. Despite these challenges, innovations in the industry are landing in time for the holidays, with AI becoming an increasingly important factor in consumer electronics.

Despite normalization in the consumer electronics market, there are still constraints, including severe shortages of high-bandwidth memory DRAM, which could impact laptops and mobile phones. To mitigate these risks, consumer electronics companies are advised to gain real-time visibility into market demand, operationalize risk insights, and build resilience into new product design. The holiday season will be a proving ground for companies that can balance innovation and agility in response to market demands.

Key takeaways:

  • The holiday shopping season is expected to see a record $241 billion spent online, with electronics, apparel, furniture and home goods accounting for more than half of that.
  • AI is becoming an important factor in consumer electronics as companies like Apple, Google, Samsung infuse their devices and services with AI capabilities.
  • Despite normalization, the consumer electronics industry still faces constraints such as severe shortages of high-bandwidth memory DRAM, which could impact laptops and potentially mobile phones in the near term.
  • The holiday season will be a proving ground for consumer electronics companies that can balance bringing their innovations to market faster than competitors and staying agile in their response to new market demands and preferences.
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