Audio & Video Equipment Manufacturers

Industry Profile Report

Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters

Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 467 audio and video equipment manufacturers in the US produce electronic audio and video equipment for home entertainment, motor vehicles, and public address and musical instrument amplification. Products include stereo equipment, speaker systems, televisions, household-type video cameras, jukeboxes, microphones, and amplifiers for musical instruments and public address systems. Large firms typically enjoy scale benefits, while small firms compete by offering specialty products.

Inventory Obsolescence

Rapidly evolving technology and fast product development cycles, which characterize the audio and video equipment manufacturing industry, can lead to inventory obsolescence.

Dependence on Foreign Contract Manufacturing

Although US firms play a significant role in the domestic audio and video manufacturing market, foreign production in countries with lower labor costs is the norm.

Industry size & Structure

The average US audio and video equipment manufacturer operates out of a single location, employs about 20 workers, and generates $9.6 million annually.

    • The US audio and video equipment manufacturing industry consists of about 467 firms that employ about 9,500 workers and generate about $4.5 billion annually.
    • The industry is concentrated; the top 50 companies account for 78% of industry revenue.
    • Large firms are generally the US subsidiaries of foreign companies, which include Samsung, Sony, and LG Electronics. Multi-national conglomerates dominate the industry. Large US companies include Bose and GoPro.
    • While television manufacturing is included in the industry, foreign-owned firms produce the vast majority of TVs sold in the US. TVs assembled in the US typically use parts from abroad.
                                    Industry Forecast
                                    Audio & Video Equipment Manufacturers Industry Growth
                                    Source: Vertical IQ and Inforum

                                    Recent Developments

                                    Nov 21, 2024 - Electronics Manufacturing Growth
                                    • While overall US manufacturing activity contracted in October 2024, computer and electronic products saw growth during the period, according to the Institute for Supply Management’s Manufacturing ISM Report on Business. The Manufacturing PMI registered 46.5% in October, down 0.7 percentage points from the 47.2% recorded in September. A reading above 50% indicates manufacturing expansion. Five manufacturing industries reported growth in October: Apparel, Leather & Allied Products; Food, Beverage & Tobacco Products; Petroleum & Coal Products; Computer & Electronic Products; and Miscellaneous Manufacturing. Industries reporting contraction in October included Textile Mills; Printing & Related Support Activities; Transportation Equipment; Chemical Products; Electrical Equipment, and Appliances & Components. Audio and video equipment shipments fell 32.8% in July 2024 compared to a year ago and increased 15.4% from the previous month, according to the US Census Bureau. Inventories of audio and video equipment dropped 26.6% in July 2024 compared to a year ago and fell 3.2% from the previous month.
                                    • Bose Corporation announced it acquired high-end audio company McIntosh Group in November 2024. McIntosh manufactures amplifiers, speakers, turntables, and other audio products under the audio brands McIntosh and Sonus faber. The deal opens up new opportunities in the automotive sector by leveraging Bose’s experience in automotive auto and McIntosh’s legacy of performance and design, per the announcement. According to Bose CEO Lila Snyder,, “Over the last six decades we’ve delivered the best premium audio experiences possible; now, with McIntosh Group in our portfolio, we can unlock even more ways to bring music to life in the home, on-the-go and in the car. We look forward to honouring the heritage of these brands, investing in their future and pushing the boundaries of audio innovation to bring customers experiences they’ve never heard before.” Bose acquired McIntosh Group from investment firm Highlander Partners, and financial terms of the deal were not disclosed.
                                    • The Pro AV Sales Index declined in October 2024 month over month, according to the Audiovisual and Integrated Experience Association (AVIXA). The Pro AV Sales Index registered 53.4 in October 2024, down from 56.5 points in September. An index of 50 indicates firms saw no growth or decline in business activity; more than 50 indicates an expansion, while less than 50 indicates a decrease. The October result tied with February for the lowest results of the year. Respondents cited a range of factors for lackluster sales including seasonal factors and fewer deals closing during the period. In comparison, the monthly average index in 2023 was 58.8, representing a stable year but not as strong as 2022, according to AVIXA.
                                    • As part of an expansion of its global retail presence, GoPro announced a new distribution deal with SoftBank Group’s SB C&S Corporation in Japan to sell its products, according to SGB Media Online. Through the partnership, SB C&S will distribute a full range of GoPro cameras and accessories to its sales network in Japan, including its directly managed SoftBank stores as well as large consumer electronics retailers Yodobashi and Yamada. SB C&S will provide retailers with product displays, training, and support for GoPro products. GoPro announced during its Q1 2024 earnings call that it is focused on expanding its global presence, with 1,000 new retail doors added in the first quarter. The company plans to add 3,000 to 6,000 new retail doors by the end of 2025.
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