Consumer electronic group says sales to reach $174.9 billion this year, exceeding expectations

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Consumer electronics to reach $174.9B in 2010

ARLINGTON, Va. — Rapid sales of new gadgets such as Apple’s iPad and Amazon.com’s Kindle have prompted an industry trade group to raise its projections for sales to retailers to $174.9 billion.

The Consumer Electronics Association said Thursday that revenue for electronics manufacturers is projected to grow 3 percent over last year, up from its previous estimate of growth of 0.3 percent. The new forecast is $9 billion higher than the previous one. Industry shipment revenue is expected to hit a new high of more than $182 billion by 2011.

Shoppers are responding to new products such as tablet computers and 3D displays, said trade group president and CEO Gary Shapiro. Other hot categories include smartphones, Blu-ray players and e-readers.

The group raised its forecast because the new categories of products are growing so quickly, said Steve Koenig, director of industry analysis.

“We see a stronger second half demand unfolding, and we anticipate a robust holiday quarter,” he said in a news release.

Mobile computing is expected to lead the industry by 2011. The category, which includes laptops, tablets and netbooks but not smartphones, will reach more than $26 billion in shipment revenue by next year. Much of that growth will come from tablets such as the iPad as more companies try to duplicate its success.