BI Intelligence Express: Gadgets Are A $1 Trillion Market

The Global Gadget Market Will Be A $1 Trillion Market In 2012
That’s according to a study by the Consumer Electronics Association and GfK Research. It’s not just the absolute amount, but the growth: “World growth on consumer electronics sales: in 2010, 12%, 2011, 8%.” That’s impressive. Forbes has the details, all interesting.

The key point we want to highlight is why this size and growth:

  • Economics: Emerging markets are growing; as this new middle class emerges, they’re going to want to buy gadgets. 
  • Usage: New uses and needs are coming online, from bracelets to measure your fitness to wearable computers to “the internet of things.” It’s not just smartphones and tablets, though they’re huge; it’s a galaxy of new gizmos. That makes a very exciting market.
  • Technology: These new uses are coming online because technology, from power-sipping chips to the cloud, is enabling it.

The fact that this growth is coming from these different sources means that it should be big and sustainable. It means, in turn, that there is a huge opportunity in the gadget market. 

Again: when we think “gadgets” we think “smartphones and tablets” because they’re the ones that are shaking up computing the most right now. But the story is much broader and deeper. Very exciting.

In other news…

An animated web series produced by Tom Hanks will premiere on Yahoo. This is the kind of thing Yahoo should focus on: great (premium but not only) content and media.

Nokia’s flagship Windows-based phone, the Lumia 900, will debut at CES today, according to reports. The phone will come first on AT&T. We believe the smartphone opportunity is still wide open and the Microsoft/Nokia duo has what it takes to build a good franchise there.

Netflix launches its streaming service in the UK and Ireland. One reason why Netflix’s stock has performed terribly is reduced margins from increased investment in international expansion. In Europe, Netflix faces British-born and Amazon-owned Lovefilm, a well-regarded competitor.

At long last, Yahoo is looking for new board members, reports the WSJ. This comes just a few days after a new CEO (Scott Thompson) was named and is likely welcome news for shareholders weary of uncertainty and volatility at the company.

U.S. mobile commerce was up 91.4% in 2011, according to eMarketer. That’s an astounding growth rate (there were $6.7 billion in mobile sales last year) but not entirely surprising giving the rapid rise in smartphone ownership and the ever-increasing number of mobile apps and sites.

Warner Brothers has doubled the wait period for Netflix and other rental services for new DVD releases. This is the latest attempt by movie studios to support slumping DVD sales. It should have a minimal impact on Netflix’s business, since its future is streaming. 

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