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Audio & Video Equipment Manufacturing
First Research, Feb 2012, Pages: 10
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Executive Summary
Brief Excerpt from Industry Overview Chapter:
The US audio and video equipment manufacturing industry includes about 400 companies with combined annual revenue of about $3 billion. Major companies include Harman International, Bose, and US manufacturing divisions of foreign companies like Panasonic and Toshiba. The US industry is highly concentrated: the 50 largest companies have almost 80 percent of overall revenue.
Internationally, the top 10 manufacturers of audio and video equipment generate roughly $200 billion in annual revenue from A/V products. Major companies include Panasonic, Sony, and Pioneer (Japan); Royal Philips (The Netherlands); and LG Electronics and Samsung (South Korea).
COMPETITIVE LANDSCAPE
Demand is driven by consumer income and the rate of product innovation. The profitability of individual companies depends on manufacturing efficiency and effective marketing and distribution. Large companies have advantages in economies of scale in manufacturing, marketing, and distribution. Small companies can compete effectively by offering specialty products or components in system solutions, such as speakers in a home theater system. The industry is capital-intensive: average annual revenue per worker is about $420,000 per year.
Audio and video equipment competes with PCs and game consoles in the consumer home entertainment market. PCs and game consoles are covered in profiles of the Computer Manufacture and Electronic Gaming Products industries.
US manufacturers of audio and video equipment face significant competition from imports, particularly from China, Mexico, and Japan.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include TVs, auto and home stereos, speakers, DVD/VCR players, Blu-ray players, and camcorders.
Audio and video...
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