LOS ALTOS, CA – Consumer electronics output will drop 6.4% in 2009 on a lack of compelling new products coupled with the dismal economic environment, says Henderson Ventures.
 
This after rising an anemic 1.7% in 2008, Henderson says.
 
Excess inventories from the 2008 Christmas selling season will also be a drag on sales. Cellphones and computers will be exceptions, adds the firm. Also, game consoles are likely to achieve a gain of 10% this year.
 
Global vehicle production fell 3% in 2008. US output plummeted 19.8% and West European production was down 10.3%. Even though electronics content is steadily rising in cars and trucks, cost containment is a major issue among auto OEMs, says Henderson. Consequently, automotive electronics output managed only a thin 0.4% increase in 2008, versus a 10.1% surge in 2007.