Channelnews : sound sales booming but not in specialist channel

Sound gear is proving a money spinner for retailers with global sales of audio hardware growing 28% in 2016. The only problem is that a lot of that revenue went to mass retailers Vs the

specialist audio channel driven primarily by the growth in demand for networked audio products. According to Futuresource research, Global Q4 sales grew 28 percent year on year to $10.2

billion, driven primarily by a new generation of home audio and headphones. Home audio grew 33 percent year over year — Futuresource didn’t specify which products fall under this umbrella —

while headphones grew 24 percent. Continued growth through 2017 is expected by the company. Other growth drivers listed by Futuresource include: *the popularity of music streaming services;

*the entry of Amazon’s Echo and Dot into more countries such as Australia. *the launch of Google Home into selected markets; and *widespread consumer adoption of wireless headphones. The

Amazon Echo and Dot which has not been launched in Australia accounted for approximately 30 percent of Q4 wireless speaker sales in the U.S., said Zlata Jelisejeva, Futuresource research

analyst. Apple’s removal of the 3.5mm port on the iPhone 7, meanwhile, accelerated wireless headphone sales, which represented 49 percent of overall Q4 headphones sales. Related: Headphone

Sound Quality Busts Price in Consumer Priority In the wireless speaker category, Amazon moved up from fifth position during Q1- Q3 2016 to become the number two brand in Q4 2016 for units

shipped worldwide. The online retailer is expected to launch a wide range of sound products in Australia when they launch later this year. The wireless speaker segment remains highly

concentrated, with a few top audio brands accounting for nearly half of all unit sales, they include Sonos, Heos and at the top end Bluesound. It wasn’t sunshine and roses for all audio

categories, however. Hi-fi systems, loudspeakers, separates and soundbars all decreased in 2016. As for what retailers, can expect going forward, D’Souza advised awareness of voice personal

assistant speakers and wireless headphones. About Post Author David Richards David Richards has been writing about technology for more than 30 years. A former Fleet Street journalist, he

wrote the Award Winning Series on the Federated Ships Painters + Dockers Union for the Bulletin that led to a Royal Commission. He is also a Logie Winner for Outstanding Contribution To TV

Journalism with a story called The Werribee Affair. In 1997, he built the largest Australian technology media company and prior to that the third largest PR company that became the

foundation company for Ogilvy PR. Today he writes about technology and the impact on both business and consumers.