Despite the personal computer activity the value of U.S. manufactured consumer electronics products has grown at a modest 2 percent annual pace in the Nineties, not even keeping pace with inflation. This reflects declining sales of radios made in America, a stable market for other products, and price competition. A strong indicator of the consumer electronics industry, televisions, account for two-thirds of the consumer electronics industry's shipments. Sales of color televisions to dealers increased by 7 percent to 25.5 million sets in 1996. Sales have stayed above 20 million sets per year over the last five years, even though 98 percent of American homes already have at least one TV set.
Most analysts recommend companies that also have interests in a variety of industries.
As mentioned earlier, shrinking margins are a concern, but consumer excitement in electronics, especially computers, continue to promise growth in the industry. The consumer electronics industry is highly competitive. From both a manufacturing and retail standpoint, consumer electronics embodies the concept of the free market economy. Companies such as Best Buy and Circuit City have grown incredibly in the past few years. Best Buy has doubled its outlets since fourth quarter, 1995.