Smartphones bite into sales of other electronic devices, GfK survey shows

Strong competition from smartphones is biting sharply into the market of portable audio devices, which has seen a 17 percent decline. Many consumers who own a smartphone find it useless to buy MP3 and MP4 players, according to a survey carried out by GfK that identifies the latest trends in the domain.

Retailers and producers are trying to oppose this trend by taking down the prices for these devices. The average price has decreased from EUR 90 in the first half of 2011 to EUR 84 presently.

The segment of the cheap digital cameras is also under threat as a result of the proliferation of smartphones, since owners of smartphone that have a performing camera are no longer interested in these.

Smartphones are also replacing more and more satellite navigation devices for cars. Thus, consumers in Western Europe ate buying less such devices for their cars. In the first half of the year, the market of car electronic devices saw a sharp drop in sales of 19 percent, while in some countries such as Italy for instance this decline was even 30 percent.

Portable navigation devices in general are losing the battle with smartphones, seeing a 20 percent low in sales, since navigation applications are available free of charge. Germany is still the main market for portable navigation devices, as Germans buy 31 percent of such products sold in all Western Europe.

However, the market of niche technological products is safe. For instance, focus is placed on intelligent software solutions for smart TV sets which allow users to watch TV, surf the internet or listen to music by simply pushing the button.

Connecting the smartphones or MP3 or MP4 players to loudspeakers or headphones for better sound quality is also a trend.

Consumers in developed countries in Western Europe- France, Germany, Italy, the Netherlands, Spain and Great Britain have been more cautious when it comes to spending their money on electronic devices in the first half of the year. Sales are 10 percent lower than in the same period of 2011, shows the survey. Only Germany is an exception, where retailers have seen a total growth of 8.5 percent in sales of TV sets and other electronic goods.

Otilia Haraga